The Bank of Sydney has launched a new basic mortgage product for owner-occupiers, with a similar property investment loan expected in due course.
The new mortgage product from Bank of Sydney, BOSBasic, is a principal and interest (P&I) loan for owner-occupiers.
The loan, which comes with a variable interest rate of 3.55 per cent per annum (3.57 per cent comparison), is applicable for existing residential dwellings in metro postcodes only (excluding the Northern Territory, Western Australia and Tasmania – with restrictions for properties located in Queensland).
Borrowers must have been in the same line of employment for at least one year and have a deposit of at least 20 per cent, according to the bank.
The BOSBasic also provides a “fee-free redraw facility” for customers and is available for “purchases” or “dollar-for-dollar” mortgage refinance schemes.
The Bank of Sydney further announced it will soon release a similar basic investment property loan onto the market.
Launching the new product line following the release of the final report from the royal commission, the head of third party distribution at Bank of Sydney, Steve Sampson, said: “In these turbulent times, we hope to bring some joy to the market with our new proposition.
“We hope that this new product confirms our support of the broker market, and we are expecting a big uptake,” Mr Sampson said.
[Related: Non-majors lead the way with rate cuts]