Looking to buy a home and on the hunt for a bank that shares your ethics? Bank Australia might be just that, and it offers some relatively competitive home loan products.
If you’re considering borrowing through Bank Australia, we’ve rounded up all you need to know into one handy location – right here!
Bank Australia home loans review
|
Home Loan Type |
Available via Bank Australia? |
|
✅ |
|
|
✅ |
|
|
✅ |
|
|
✅ |
|
|
✅ |
|
|
❎ |
|
|
✅ |
|
|
✅ |
|
|
✅ |
|
|
✅ |
|
|
❎ |
|
|
✅ |
|
|
✅ |
|
|
❎ |
|
|
✅ |
Bank Australia promises to be an ‘ethical’ banking alternative, and some of its loan features offer notable benefits for many borrowers.
Interest rate discounts for ‘green’ homes
Some of Bank Australia’s headline mortgages offer lower rates for homes deemed ‘green’.
To be considered ‘green’, houses must have either at least a 7-star NatHERS rating or feature ‘ambitious’ green upgrades made within the last 12 months.
Those with homes that have a NatHERS rating of more than 7.5 stars might be eligible for an even larger interest rate discount.
Eco-pause: Pause home loan repayments amid ‘green’ upgrades
The bank will also allow certain borrowers to pause their home loan repayments for up to three months, or halve them for up to six months, in order to direct money saved towards eco-friendly upgrades. Be aware that interest could still capitalise into the loan during this period, meaning you could owe more over the mortgage’s life.
Parental pause: Halt repayments amid new family member’s arrival
Eligible borrowers that also happen to be new parents can also pause their repayments for three months or halve them for six months. Though, interest will still accrue during that period.
Loan-to-value ratio requirements
Like the majority of banks, Bank Australia demands borrowers have a deposit of at least 5% to enter a home loan agreement.
The bank is also one of more than 30 lenders authorised to provide home loans through the Home Guarantee Scheme (HGS).
That means it might lend to eligible home buyers with deposits of as small as 2% applying through the scheme, with the government essentially guaranteeing as much as 18% of the loan.
Offset accounts and redraws
Bank Australia also offers offset accounts and redraw facilities on many of its mortgage products. However, those signing on to a fixed rate Basic Home Loan through the lender will be ineligible for an offset account.
Meanwhile, the balance of an offset account on any fixed loan product is capped at $20,000. Additionally, any extra repayments on a fixed loan must not exceed $30,000 over the fixed period, lest a borrower be potentially dealt a break fee.
When it comes to variable rate loans, the bank changes a higher rate to those with offset accounts.
Fees and charges
The bank levies an establishment fee of $595 for new mortgages, a reduced fee of $295 for existing mortgages, and a discharge fee of $250.
Each of those fees will presumably need to be paid at the initial and concluding stages of each new loan process.
In addition to those, Bank Australia also charges an annual fee of $350 for customers signing on to its Premium Home Loan Package product, which provides an offset account and a fee-free Platinum Rewards Credit Card. Worth noting, there is no establishment fee charged on the Premium Home Loan Package.
For the most up-to-date and detailed information on fees and charges associated with Bank Australia's home loans, it's best to consult the bank or its website.
