Loan Terms and Conditions

Hello Forum Members,

I am about to sign for my first loan contracts (Investment) with Bendigo and Adelaide bank ltd. I am worried about the condition that they have put up in the contract. I would like to know are these the standard terms of contracts with every bank in Australia -

Under this Home Loan Contract: -

• the total amount of interest charges payable;
• each Annual Percentage Rate (except to the extent that we have agreed that it is fixed or fixed for a period) and how it applies;
• the number, amount or method of calculating the amount, total amount, frequency and, time for payment of repayments and the period over which they are to be paid;
• the amount or method of calculation, frequency and time for payment of credit fees and charges,
• may all be changed without your consent.

New fees and charges may also be imposed without your consent.

If any law regulates that change, we may only make the change to the extent permitted by, and subject to, the requirements of that law.

Enforcement expenses may become payable under the Home Loan Contract or Security (if any) in the event of a breach.

Thanks

 

I haven't seen the standard terms of every bank in Australia, but I would say it is likely to be.

 

Thanks Terry appreciate your response.

Also, My loan Contract is split (Fixed & Variable). I have cap of $20,000 per year extra repayment on Fixed if I do more than that there will be break fee which is as per loan contract "very significant"!
But after the Fixed period gets over is it safer to assume that I can repay the entire loan in 1 year time (if I can) and bank wont charge me for that or Do you think it should be written in clause for how much time I should have loan with the bank?

Just trying to get my head around Loan contract.

Thanks

 

You will not be able to change or add any clauses in the loan agreement. Early repayment when it is variable will be covered somewhere.

Your question can be addressed by your mortgage broker. If you are that worried about it? Dont fix.

there are more important questions you are not asking. Even if you could repay the fill loan in a year, why would you want to? Is an offset available? Do you understand the implications of repayment v offset if you want to buy ppor later?

 

Hey buddy,

Why isn't your broker explaining the full loan documents to you if you dont understand it ?

 

brokers shouldn't be explaining contracts anyway as this is legal advice so they would be exposing themselves to being sued later and their insurance wouldn't cover them. They could just explain the key terms, whether fixed or variable, when it reverts to PI etc.

 

As far as I'm aware, Adelaide Bank is broker channel only. If you want to go direct, you go to Bendigo Bank.

 

After the fixed period ends, the loan will switch to variable and you can make as many extra repayments as you like.

The Terms and Conditions outlined above are reasonable standard with most lenders. There's no chance that any lender will change their contracts for an individual home loan customer.

Overall I'm wondering why there's a split for this scenario? Adelaide bank offers an offset account on their fixed rates. Unless you're splitting for tax purposes, there's little need for a variable/fixed split as you can use the offset account to effectively park your savings.

 

Adelaide bank is the broker channel.

If you want to go direct, you'll be going to Bendigo bank.