Summerland Bank's range of mortgage products demonstrates its commitment to sustainability and the community it serves.

Not only does it have standard and offset home loans, but it also provides financing to home buyers of environmentally friendly properties. Summerland Bank's rates are relatively competitive, particularly for its green home loan, although they may not be the lowest compared to other lenders.

What are the home loans available at Summerland Bank?

Eco Home Loan

Borrowers buying or renovating environmentally sustainable properties can access a discounted rate through Summerland Bank's Eco Home Loan. It carries the bank's lowest variable interest rate, allowing for significant savings over the loan term. It comes with a redraw facility and supports extra repayments without penalties.

To qualify, interested customers need to provide the bank with evidence that the property they're seeking financing for features at least five items from the Sustainable Features List, seen below:

• Solar power system (minimum 5kw)

• Solar or heat pump hot water system

• Battery energy storage

• Water storage (minimum 5,000 litres)

• Waterless composting toilet

• Wall and ceiling insulation

• Underfloor insulation

• Double-glazed and/or tinted windows

• Home wastewater treatment system

• Reverse cycle air conditioning

Customers can also include other sustainable features not included in the list but that they believe should be considered. These will be subject to approval by the bank's sustainability committee. If the property does not feature any five in the list, the loan purpose must include financing the purchase or installation of the required systems. Loan amount for eligible borrowers starts at $150,000.

Basic Home Loan

Summerland Bank's standard home loan features a variable interest rate and a redraw facility. New borrowers pay no establishment or monthly administration fees, while every customer (new and existing) can make extra repayments or pay off their loan in full without incurring any charges.

The Basic Home Loan is available for both residents and investors seeking to make principal and interest (P&I) repayments. An interest-only (IO) option is not available. It's also suitable for refinancers and borrowers renovating or building a home. New loan amount starts at $150,000.

Fixed Home Loan

This home loan is available for owner occupiers and investors seeking to lock in rates over their preferred term, from one to five years. At the end of the fixed period, the loan reverts to the applicable variable rate.

It has a redraw facility and the option to make a maximum of $20,000 additional repayments per year without penalty. Establishment and monthly loan administration fees are waived for new customers. And the minimum amount for new lending is $150,000.

Premium Home Loan

Summerland's premium home loan comes with all the features available in its variable mortgage but with the added benefits of an offset account and an option to bundle a credit card.

The offset account allows customers to link their Summerland transaction account to their loan, where the money they put in will be deducted from the calculation of the interest payable. Meanwhile, the annual fees for the bundled credit card will be waived over the loan term.

New customers can borrow at least $500,000, while existing borrowers may take out a minimum of $250,000.

Key features of Summerland Bank home loans

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

What are the fees charged to customers?

Summerland Bank home loan fees and charges vary depending on the product and whether the customer is new or existing.

• Establishment fees: Basic and Fixed home loans attract a $300 establishment fee while Premium and Eco loans do not.

• Monthly admin fees: Basic and Fixed home loans attract an $8 monthly admin fee, while Premium and Eco home loans do not. These are also waived for new customers.

• Annual fees: The Premium home loan with offset attracts a $380 annual fee. Customers will want to make sure they are benefiting by more than $380 by opting for an offset account.

• Redraw fees: Are $0 for electronic redraws, but $25 for assisted redraws.

• Valuation fees: A $300 property valuation fee applies before settlement.

• Legal fees: $200

• Exit fees: $250

Fixed-rate home loans may also attract break fees should a borrower exit the fixed term before it expires.

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

How to apply for a home loan at Summerland Bank

Potential borrowers can apply online, through the phone, or in person at any Summerland local branch. Those considering applying for pre-approval to determine their borrowing capacity can do so online.

To be eligible for the bank's home loans, applicants must meet the standard requirements on personal identity, income source, expenses, assets, and liabilities. As with most mortgages, applicants must be Australian citizens aged 18 and over and have a regular source of income.

If those criteria are met, fill out the application form with all the necessary details and provide the required documentation, as seen below:

Proof of identity

• Australian passport

• Driver's licence

• Medicare card

Proof of income

• Last two months' payslips (for employed)

• Employment contract or letter from employer

• Tax returns (for self-employed)

Financial details

• Recent bank statements

• Savings history

• Details of any existing debts

Expenses

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

According to the bank, they will be in contact within two business days following the receipt of the application form and supporting documents.

Visit Summerland's website or contact its customer service representative for more information about home loan eligibility requirements, fees, and current rates and terms.