Bank of Sydney offers a range of mortgage products tailored to meet different customer needs, from first-time buyers and property investors to those seeking to leverage their home equity for additional financial flexibility.

The bank offers a standard home loan, one that comes with a 100% offset account, and fixed and variable-rate options. Loan-to-value ratio (LVR) ranges from 50% to 80%, which means would-be borrowers need at least a 20% deposit to be eligible.

Bank of Sydney's rates are relatively competitive, often ranking among institutions offering lower rates compared to other lenders. However, some customers have noted that its standard variable rates can be less competitive than others, and the limited branch access poses a challenge in accessing the bank for in-person transactions.

What are the Home Loans Available at Bank of Sydney?

BOS Basic Home Loan

Bank of Sydney's basic home loan is designed for customers looking for a no-frills and low-cost mortgage.

BOS Basic Home Loan features a variable rate, free redraw facility through Internet banking, and zero application, ongoing and annual fees. It supports extra repayments at no cost, and the bank covers valuation fees up to $420, as of this writing. Do note, however, that customers may need to fork over cash for variation, settlement, and legal fees.

It's available for both residents and investors seeking to make either principal and interest (P&I) or interest-only (IO) payments at variable rates.

Expect More Home Loan

This home loan is suitable for borrowers who expect more flexibility and features from their home loans.

Bank of Sydney's Expect More Home Loan comes with a 100% offset account, a fee-free redraw facility via Internet banking, and a no-cost extra repayment feature. A package fee of $125 per annum (as of writing) applies for every offset account. It also attracts other fees, including those for settlement, valuation, and legal. Valuation costs up to $420 are covered by the bank.

It's available in both fixed and variable interest rate options, making it generally well-reviewed for its flexibility. For fixed-rate Expect More loans, a $10,000 per year limit applies to additional repayments.

Home Equity Maximiser

Home Equity Maximiser is a line of credit loan that allows borrowers to tap into the equity in their property to access funds as needed. This is designed for homeowners who require capital to finance home renovations and other large expenses without taking out a new loan or refinancing their mortgage.

This loan is particularly flexible as borrowers are enabled to make additional repayments and link the credit line to a Visa debit card for easier access to funds. Customers have the option to pay interest only on the outstanding balance they have used every month rather than the entire loanable amount.

Further, the Home Equity Maximiser can also be combined with other Bank of Sydney home loan products.

All these features and flexibility, however, come with higher interest rates compared to standard home loans. It also comes with ongoing fees, among other hefty fees, associated with maintaining the credit facility. To be eligible, borrowers generally need a strong equity position in their property and have a good credit history.

Key Features of Bank of Sydney Home Loans

Bank of Sydney home loans come with features that provide customers with the flexibility in managing their mortgages.

Flexible repayment options

Bank of Sydney home loan borrowers can choose their repayment frequencies - either weekly, fortnightly, or monthly - that best suit their financial circumstances such as pay cycles and whether or not they want to pay off their loans early. The bank also offers principal and interest and interest-only repayments.

Fee-free redraw facility

Borrowers can make extra repayments without incurring penalties (fixed loans come with a $10,000/year limit) and later redraw these funds, also sans fees, so long as the transaction is done online via Internet banking. In-branch redraws may attract a fee, depending on the home loan product.

100% offset account

Available on Expect More Home Loan, this feature allows borrowers to reduce the interest paid on their mortgage by offsetting the loan with 100% of the funds in the linked offset account.

No ongoing fees

Except for the Home Equity Maximiser, Bank of Sydney home loans do not charge ongoing monthly fees, which can result in cost savings over the life of the loan. The Expect More Home Loan may charge an annual fee per offset account activated and linked.

Interest rate options

The bank offers both fixed and variable interest rate options, allowing customers to choose what best suits their needs and financial situation.

What are the Fees Charged to Customers?

Bank of Sydney home loan fees and charges vary depending on the product.

These are correct at the time of writing and are subject to change.

*Up to $420 covered by Bank of Sydney

How to Apply for a Home Loan at Bank of Sydney

Interested borrowers can apply online through the bank's online application portal or in person at any Bank of Sydney branch.

For online applications, customers must submit their filled-out loan application form and upload the required documents. They can track the status of their application online. It's especially suitable for those who are located far from any Bank of Sydney branch.

Alternatively, an in-person application can be beneficial to those who prefer direct interaction with a loan specialist who can guide them through the process.

To be eligible for the bank's home loans, applicants must meet the standard requirements on personal identity, income source, expenses, assets, and liabilities. Would-be borrowers must be Australian citizens or permanent residents aged 18 and over and have a regular source of income.

Here are the documents required to be submitted to the bank:

Proof of identity

• Australian passport

• Driver's licence

• Medicare card

• Or other government-issued IDs

Proof of income

• For employed: recent payslips and tax returns, employment contract or letter from employer

• For self-employed: business financial statements and notices of assessment

Proof of residence and financial details

• Recent utility bill or bank statement

• Savings history

• Details of any existing debts

Expenses

• List of ongoing expenses (e.g. utilities, food, healthcare, etc.)

According to the bank, the length with which a home loan application is approved depends on several factors including the complexity of the application, the completeness of the documents provided, and the bank's current processing workload. Generally, the approval process can take anywhere from two to four weeks from the submission of the complete application.