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Adelaide Bank - 100% Offset on Fixed Loans - Owner Occupied from 2.05% 2 Years Fixed + Variable Discretions

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Adelaide Bank - 100% Offset on Fixed Loans - Owner Occupied from 2.05% 2 Years Fixed + Variable Discretions
Go to Deal
Store RepLoan Base @ Loan Base on 06/01/2021 - 10:41 brokers.adelaidebank.com.au (308 clicks)
Last edited 04/03/2021 - 11:21 by 2 other users

Adelaide Bank currently has some very sharp fixed pricing which include a 100% offset account, giving you maximum flexibility with offsetting your lending while still benefiting from very low fixed interest rates.

Unlike some other lender offers with 100% offset on fixed, this does not have strict employment, industry or education requirements for eligibility.

Note that ABL currently has very fast turnaround, with a 3-day SLA - much better than most other lenders right now!

Owner Occupied < 80% LVR

  • 2 Year Fixed - 2.05% (2.90% CPR)
  • 3 Year Fixed - 2.05% (2.85% CPR)
  • 4 Year Fixed - 2.29% (2.82% CPR)
  • 5 Year Fixed - 2.34% (2.81% CPR)

Investment < 80% LVR

  • 2 Year Fixed - 2.35% (3.14% CPR)
  • 3 Year Fixed - 2.35% (3.09% CPR)
  • 4 Year Fixed - 2.59% (3.12% CPR)
  • 5 Year Fixed - 2.69% (3.13% CPR)
Fees
  • Limited time: Upfront fees of $199 for 2-3 year fixed owner occupied P&I loans
  • Upfront fees of $498 for all other fixed loans
  • Optional ongoing fee of $15 / month for the 100% offset account
Variable Rates

Since we maintain a very strong relationship with Adelaide Bank, we also have access to some sharp discretionary pricing on variable rates via ABL. Please get in touch to discuss these as we cannot post them online.

Alternatives

Depending on your total utilised lending size and LVRs, we can offer a number of alternative lender options with lower fixed rates (without 100% offset) and lender cashbacks as high as $4,000 for a single property (potentially higher cashbacks if you refinance/purchase additional properties). Please reach out to discuss your options.

Comparison Rates

Any quoted comparison rate is only true for the example given and may not include all fees and charges. Different terms, loan amounts or fees may result in a different comparison rate. Comparison rates are based on a loan amount of $150,000 over a loan term of 25 years.

HOW TO APPLY

You can lodge an enquiry via our platform here - https://loanbase.com.au/compare-home-loans-fva, or contact one of our brokers directly with their details below:

Leo Gonzales, Email: [email protected], Calendar link: https://calendly.com/loanbase-leo/initial
Andrew Loucas, Email: [email protected], Calendar link: https://calendly.com/loanbase-andrew/quickchat

Loan Base Pty Ltd (ABN 95 162 141 915) · Australian Credit Licence Number 508 308
Head Office: Level 1, 1-5 Link Road, Zetland, NSW, 2017. Phone: 1300 512 377.

Financial Home Loan

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closed Comments

  • dangerdanger on 06/01/2021 - 10:42

    Interesting…

  • jaymzrsa on 06/01/2021 - 10:50
    +5

    I use TicToc who are essentially Adelaide bank, so much so that I use my TicToc details directly on the Adelaide Bank app. So far so good, haven't had any issues at all and they have the "same" deal as this at 1.89%. If you are thinking of switching, maybe look at at TicToc loans first as it is the same product with better rates.

    edit: *better rates on the 2 and 3 year product https://tictoc.com.au/home-loans

    • twohip on 06/01/2021 - 11:10
      +1

      Same concept with Well Home Loans via Adelaide Bank, who are also offering 90% LVR on their fixed products (same as TicToc) at 1.94%/1 year and 1.99%/2 years (higher than TicToc).

      When I refinanced I was tossing up between TicToc and Well Home Loans and ended up going with Well Home Loans, I still feel like it's a coinflip between the two of them but they're rarely beat by anyone else in market IMO, especially if you want an offset.

    • Store RepLoan Base @ Loan Base on 06/01/2021 - 11:12

      In our experience, Tic Toc is generally only a viable option if you are a customer with a straightforward financial situation, and don't do well with outside the box financials or properties (e.g. no off the plan or construction).

    • PB on 06/01/2021 - 11:52
      -1

      I was about to comment that TicToc, like many non-bank isn’t a bank and that “offset” accounts are not covered under the Financial Claims Scheme (Govt Guarantee).

      However, it turns out that funds in your TicToc offset are actually a deposit into an interest earning BANK account, thus govt guarantee up to $250k pp. The interest rate is equal and offsetting to the rate you earn on your TicToc mortgage.

      However, this arrangement may increase your assessable income meaning you pay more tax. I’m not a tax accountant however.

      Is anyone with a TicToc account able to comment on their end of year bank interest statement.

      Info here, which is silent on increasing your assessable income: https://tictoc.com.au/home-loan-guide/offset-accounts-and-th…

      • thestig on 06/01/2021 - 13:10

        I'd also be concerned about the flexibility they say they have to change the rates independently. They say they have kept them the same so far but in the middle of a fixed rate loan they have the ability to reduce the offset rate on you.

        • PB on 06/01/2021 - 13:56

          That’s exactly right @thestig
          Furthermore, when I phoned them up to query the arrangement, the Offset Account Product Guide s5.4.1 specifically states that interest earned will be assessable. It’s unclear if this refers to amounts that exceed your loan balance or all amounts received.

      • jaymzrsa on 06/01/2021 - 13:54

        The offset account doesn't generate interest per se (as far as I know) but works to reduce the amount of interest paid on the main account. It has zero effect on your tax as you don't make any capital gains.

        I'd also be concerned about the flexibility they say they have to change the rates independently.

        Not if you are on a fixed term. If you are on their variable package, this is true, but then at the moment, it is only going down. If you go fixed term, the variable rate has no effect on you.

        • PB on 06/01/2021 - 14:14
          +1

          @jaymzrsa
          Please read the link I linked to in my original comment. The assumption you made (and the same I initially made before reading the fine print) is incorrect.
          The TicToc “Offset” is actually an interest earning bank account provided by Bendigo & Adelaide Bank.
          As @thestig mentioned, the interest rate set on the “offset” can be different to the loan account.
          Capital Gains has noting to do with the deductibility of interest and offset arrangements.

          • jaymzrsa on 06/01/2021 - 14:29

            @PB: That is interesting, I just made the assumption that it worked like a regular offset.

            Is anyone with a TicToc account able to comment on their end of year bank interest statement.

            So back to this one, yes I can confirm that I have zero positive interest on my end of year statement, only a negative on the interest paid so it didn't have any tax implications https://imgur.com/a/sbw2KQR

  • alebox on 06/01/2021 - 11:12

    Forgive my ignorance but i didnt know fixed loans could have an offset. is this a new thing?

    • AaronR on 06/01/2021 - 11:15
      +2

      I've had one with Adelaide Bank for around 7 years or so. Saved me at least eleventy billion dollars.

    • Store RepLoan Base @ Loan Base on 06/01/2021 - 11:32
      +1

      You are absolutely right - most lenders do not permit offset accounts on fixed rate products, and the ones that do often restrict the facility to only offsetting a portion of the rate you are paying on your fixed loan. The difference with Adelaide Bank is that it's a 100% offset account. They've had it for quite a while, it's one of their key market differentiators.

  • avoidfullprice on 06/01/2021 - 11:27

    What's the deal here apart from a loan product with rates cheaper than some lenders?

    Is there an incentive to apply?

    Is this the cheapest loan for any particular loan term and loan amount?

    Alternatives

    Depending on your total utilised lending size and LVRs, we can offer a number of alternative lender options..

    I find that's just advertising your service for products other than what's on the deal…

    • Store RepLoan Base @ Loan Base on 06/01/2021 - 11:35

      The deal is the 100% offset account on fixed. Going by some of the comments above, many people aren't aware that this was even a thing.

    • minniethemoocher on 06/01/2021 - 14:12

      Yes I completely agree. The monthly fee on the 100% offset account makes this deal not very competitive.

  • eciuj on 06/01/2021 - 11:37
    +1

    I've been with Adelaide Bank for 10+ years as we like their offset feature. No issues at all. We've called them on multiple occasions to ask for better rates as the variable rate we are on becomes less competitive against the competition (vs Athena for example). They drop it each time so credit to them. Just like any other lender, in that if you don't ask for a better rate they won't give it to you - it's in their interest (no pun intended) to make money off you, so understandable.

    • haliloo on 06/01/2021 - 12:01

      Do you use a broker or directly contact the bank? I have tried to negotiate with their customer service on home loan rates but from what they told me it seems that the staff who answer the phone calls don't have the power to waive fees or decrease rates. They even told me that brokers have more power and the bank gives them better rates.

      • Store RepLoan Base @ Loan Base on 06/01/2021 - 12:06
        +1

        Hi Haliloo, this is the feedback we've received from a number of customers as well (that it can be difficult to secure competitive rates directly). We are generally able to ensure that all of our ABL clients retain highly competitive rates on an ongoing basis, however we are only able to do this through requests via our Adelaide Bank business development manager, whom we maintain a strong working relationship with.

    • PB on 06/01/2021 - 14:16
      +1

      Would you mind sharing what interest rate you are currently on?
      I’m on 2.60% NAB OO P&I Variable for context.

      • kidcudi on 06/01/2021 - 15:13

        I am also on the same rate

  • Skymstr on 06/01/2021 - 11:42

    Any options from them for Construction purpose?

    • Store RepLoan Base @ Loan Base on 06/01/2021 - 12:06

      Hi Skymstr, yes - in our opinion, Adelaide Bank has one of the strongest construction loan offerings on the market. Please reach out if you'd like to discuss this any further.

  • amsaini15 on 06/01/2021 - 16:23

    Do you have Interest Only Investment loan as that is prefered option for Investors? It can be Variable or Fixed.

    • Store RepLoan Base @ Loan Base on 07/01/2021 - 10:52
      +1

      Hi amsaini15,

      We have a number of interest only investment loan options which could be worth considering.

      Adelaide Bank

      • Variable Investment IO - 2.99% (3.07% CPR)
      • 1-3 Year Fixed Investment IO - 2.55% (3.13% CPR)

      Citibank

      • 2 Year Fixed IO - 2.49% (3.58% CPR) + $3,000 - $4,000 cashback depending on your loan size

      Note there's no 100% offset account with the Citibank fixed option.

      Feel free to PM me with your details if you'd like one of our team to reach out, else their contact details are in the OP.

      Let me know if you have any other questions, thanks!

      • malaykiri26 on 17/01/2021 - 11:07

        Could you please share more details on Citibank offer and share interest rates applicable for variable loans? Also what’s the criteria for $3k-$4k cashback & is that cashback per property?

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