Bank Australia is Australia’s first customer owned responsible bank with origins dating back to 1957. Today Bank Australia boasts more than 127,000 personal customers, 24 service centres throughout Australia and a 90% customer satisfaction rating. What makes Bank Australia different from other banks is a genuine commitment to uphold social and environmental responsibility in the various operations of the bank. But it’s not just for greenies, anyone looking for an extensive range of competitive home loans should consider this bank.
In fact, this year, Bank Australia bagged a 2019 Mozo Experts Choice Award for best Investor Fixed Home Loan!
Rates and fees verified as correct at 20 November, 2019. Other information correct at the time of writing.
Bank Australia’s fixed rate home loan is available for loans starting from $10,000 and allows you to borrow up to 95% LVR. There are a number of fixed terms which you can choose from starting from 1 year up to a 3 year fixed period, and you can opt for weekly, fortnightly or monthly repayments. With Bank Australia’s fixed rate loan, you can make extra repayments up to $20,000 without breakout costs and there is a complimentary redraw facility should you ever need to free up funds later on. If you want save in interest over the term of your loan, an offset savings account is available but you’ll have to pay a monthly fee to use it.
| Product | Fixed 3 year rate | Comparison Rate* | Service fee | Upfront fee | Monthly repayments ‡ |
|---|---|---|---|---|---|
| 3.54% p.a. | 3.86% p.a. | $0.00 | $0 | ||
| 3.34% p.a. | 3.58% p.a. | $0.00 | $0 | ||
| 2.94% p.a. | 3.33% p.a. | $0.00 | $0 | ||
| 3.64% p.a. | 4.58% p.a. | $0.00 | $595 | ||
| 3.44% p.a. | 4.38% p.a. | $0.00 | $595 | ||
| 3.04% p.a. | 4.02% p.a. | $0.00 | $595 |
From a no-frills, basic home loan starting at $10,000 to a full featured home loan for environmentally friendly homes, Bank Australia’s variable loans give you the most in terms of variety. Designed to save you money and the environment, Bank Australia’s variable rate loans have a range of quality features including additional repayment flexibility, free redraw facility (not available for Basic Home Loan) and a biodiversity offset feature whereby Bank Australia pledges to buy and conserve land equalling the amount financed by the loan. With the First Home Buyers Home Loan and the goGreen home loan options, you can use a mortgage offset facility which can help you save on interest over the life of your loan, but there is a monthly fee to consider. If you have a home built to a 7 star NatTHERS (Nationwide House Energy Rating Scheme) rating, you’ll be eligible for the goGreen Home Loan.
| Product | Rate | Comparison Rate* | Service fee | Upfront fee | Monthly repayments ‡ |
|---|---|---|---|---|---|
| 3.96% p.a. | 4.00% p.a. | $0.00 | $595 | ||
| 3.66% p.a. | 3.70% p.a. | $0.00 | $595 | ||
| 3.45% p.a. | 3.46% p.a. | $0.00 | $0 | ||
| 3.25% p.a. | 3.26% p.a. | $0.00 | $0 | ||
| 4.86% p.a. | 4.90% p.a. | $0.00 | $595 | ||
| 4.66% p.a. | 4.70% p.a. | $0.00 | $595 | ||
| 4.31% p.a. | 4.35% p.a. | $0.00 | $595 |
If you want to combine all of your banking to get better rates and pay lower fees, a home loan package from Bank Australia could be a good choice. For first home buyers, there’s a fixed rate first home buyer’s package for loans from $10,000 or a Premium Package if you’re looking to borrow more than $250,000. You’ll have to pay an annual fee for the home loan package option but you’ll receive heaps of money saving features including discounted interest rates, free building insurance during settlement (3 months) and waived annual fees if you have a low rate VISA credit card.
| Product | Fixed 3 year rate | Comparison Rate* | Service fee | Upfront fee | Monthly repayments ‡ |
|---|---|---|---|---|---|
| 3.49% p.a. | 4.27% p.a. | $350.00 yearly | $0 | ||
| 3.49% p.a. | 4.19% p.a. | $350.00 yearly | $0 | ||
| 3.49% p.a. | 4.12% p.a. | $350.00 yearly | $0 | ||
| 3.29% p.a. | 4.07% p.a. | $350.00 yearly | $0 | ||
| 3.29% p.a. | 4.00% p.a. | $350.00 yearly | $0 | ||
| 3.29% p.a. | 3.93% p.a. | $350.00 yearly | $0 | ||
| 2.89% p.a. | 3.59% p.a. | $350.00 yearly | $0 | ||
| 2.89% p.a. | 3.59% p.a. | $350.00 yearly | $0 | ||
| 2.89% p.a. | 3.62% p.a. | $350.00 yearly | $0 | ||
| 3.14% p.a. | 3.94% p.a. | $350.00 yearly | $0 | ||
| 3.14% p.a. | 3.90% p.a. | $350.00 yearly | $0 | ||
| 3.14% p.a. | 3.90% p.a. | $350.00 yearly | $0 | ||
| 2.84% p.a. | 3.54% p.a. | $350.00 yearly | $0 | ||
| 2.84% p.a. | 3.47% p.a. | $350.00 yearly | $0 | ||
| 2.84% p.a. | 3.47% p.a. | $350.00 yearly | $0 |
For a little more flexibility with your repayment options, you could opt for a variable home loan from Bank Australia. The same options as the fixed rate alternative are available - for loans from $10,000 a first home buyers package and for more than $250,000 a Premium Package. The same annual fee and great features apply, but you’ll have more choice in regards to when you make repayments (weekly, fortnightly and monthly options) and how much you’d like to put into extra repayments. You’ll also receive a 100% offset account, and the option of a split loan facility if you want to split your loan between a fixed and variable rate portion.
| Product | Rate | Comparison Rate* | Service fee | Upfront fee | Monthly repayments ‡ |
|---|---|---|---|---|---|
| 4.06% p.a. | 4.41% p.a. | $350.00 yearly | $0 | ||
| 3.96% p.a. | 4.32% p.a. | $350.00 yearly | $0 | ||
| 3.86% p.a. | 4.22% p.a. | $350.00 yearly | $0 | ||
| 3.86% p.a. | 4.22% p.a. | $350.00 yearly | $0 | ||
| 3.76% p.a. | 4.12% p.a. | $350.00 yearly | $0 | ||
| 3.66% p.a. | 4.02% p.a. | $350.00 yearly | $0 | ||
| 3.33% p.a. | 3.70% p.a. | $350.00 yearly | $0 | ||
| 3.38% p.a. | 3.75% p.a. | $350.00 yearly | $0 | ||
| 3.33% p.a. | 3.70% p.a. | $350.00 yearly | $0 | ||
| 3.73% p.a. | 4.09% p.a. | $350.00 yearly | $0 | ||
| 3.68% p.a. | 4.04% p.a. | $350.00 yearly | $0 | ||
| 3.68% p.a. | 4.04% p.a. | $350.00 yearly | $0 | ||
| 3.28% p.a. | 3.65% p.a. | $350.00 yearly | $0 | ||
| 3.18% p.a. | 3.55% p.a. | $350.00 yearly | $0 | ||
| 3.18% p.a. | 3.55% p.a. | $350.00 yearly | $0 |
For property investors wanting to add to their portfolio, Bank Australia’s Premium Investment loan is available for loans starting from $10,000. You are only required to make interest only repayments but the maximum you can borrow is up to 80% LVR. With Bank Australia’s investment loan, you’ll get all the features an investor needs such as the ability to make extra repayments and a free redraw facility. There is also a mortgage offset facility available, but a monthly fee is charged should you choose to use this feature.
| Product | Rate | Comparison Rate* | Service fee | Upfront fee |
|---|---|---|---|---|
| 4.41% p.a. | n/a | $12.50 monthly | $595 |
‡ Results from this calculation are estimates only as individual lenders apply different formulas. Actual repayments will depend on your individual circumstances and interest rate changes.
| No service feesNo service fees | You won’t pay any monthly service fees with Bank Australia’s fixed and variable home loans. |
| Additional repaymentsAdditional repayments | Most of Bank Australia’s home loans including variable, package and investment allow you to make unlimited additional repayments without penalty. You can make additional repayments with the Bank Australia’s fixed rate loan but there is an annual limit of $20,000. |
| Biodiversity offsetBiodiversity offset | As part of Bank Australia’s commitment to sustainability and social responsibility, most of its home loans have a biodiversity offset feature whereby Bank Australia will buy and conserve land equal to the amount financed by the home loan. |
| Repayment pauseRepayment pause | With Bank Australia’s fixed, basic variable and package home loans, you can apply for a 3 month break in repayments, or a 6 month reduction (up to half) of your loan repayments if you ever need to free up funds (conditions apply). There are two types:Eco- pause: This feature allows you to take a break from your loan repayments to assist with the purchase of energy or water saving devices such as rainwater tanks (conditions apply). |
What’s important to you in a home loan - price, features, convenience or trustworthiness? Mozo has given thousands of Australians the opportunity to review their mortgage provider on the home loan essentials that matter to them. Check out how Bank Australia scores here.
Competitive rates and low fees. Bank Australia does a good job at being ethical, unlike almost all the rest. Customer service is the best I have ever experienced.
Competitive rates and low fees. Bank Australia does a good job at being ethical, unlike almost all the rest. Customer service is the best I have ever experienced.
Col, Northern Territory, reviewed 5 days ago
Competitive rates and usually good customer service.
Competitive rates and usually good customer service.
Lauren, Victoria, reviewed 19 days ago
I love their services and features of my home loan.
I love their services and features of my home loan.
Kevin, Western Australia, reviewed about 1 year ago
They are always courteous and helpful.
They are always courteous and helpful.
Debra, Victoria, reviewed about 1 year ago
Easy to get a loan and deal with. I would recommend this provider.
Easy to get a loan and deal with. I would recommend this provider.
John, Victoria, reviewed over 2 years ago
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Applying for a home loan with Bank Australia is easy and can be done over the phone, online or in person at a branch. Whatever way you choose to apply, ensure you have the following details ready to get your application off to a good start:
If you’re not a current Bank Australia customer, you may need to verify your identity online by providing either:
