Bank Australia is a Victoria-based mutual bank that is owned by its customers, rather than by shareholders. Beginning in 1957 as the Members and Education Credit Union, Bank Australia was renamed as bankmecu before adopting its current name in 2015. Bank Australia is based in Melbourne and has served tens of thousands of customers over its history.

Bank Australia offers a wide range of mortgages that charge competitive home loan interest rates.

Borrowing Amount

Property Value

Rate Type

Bank Australia home loans rates

1 - 4 of 4
Advertised rate
Upfront fee
Comparison rate*
Ongoing fee
Go To Site
More Info

More details

More Info

More details

More Info

More details

More Info

More details

  • Suitable for low deposits.
  • Opportunity to bundle financial products together.
  • Discounts available on interest rates.
  • Split loan options are included.
  • Flexible repayment schedule with weekly, fortnightly and monthly repayment options.
  • Some products include fees.
  • Early exit fees apply to some products.
Bank Australia customer service:

Bank Australia has over 30 branches located across Australia, and it’s customers have access to more than 3000 rediATMs nationwide. Home loan customers can get in touch with Australia Bank by calling the customer service centre or seeking face-to-face advice in branch. Customers can also use online banking and a mobile app 24-hours a day. Email and post are also options for contact.

  • Customer service centre (phone, email, branch)
  • Mobile app
  • Online banking

How to Apply

Bank Australia home loan customers can visit a branch for assistance or seek further information by calling the customer service centre. Alternatively, customers can submit their contact details online and Bank Australia will get in touch with a courtesy call to help facilitate the application process. By applying online customers can choose a time that’s most convenient for their needs and receive an indicative decision within minutes. Before committing to any loan customers should conduct thorough research and calculate how much they can afford to borrow. To assist in completing a loan application customers should have the following documentation:

  • Personal identification.
  • Personal income details.
  • Details of current debts and assets.

About Bank Australia home loans

Bank Australia home loans cater for a wide variety of mortgage customers:

  • Owner-occupier home loans
  • Investor loans
  • Lines of credit
  • Bridging loans
  • SMSF loans (superannuation home loans)

Customers are also free to choose from a range of home loans interest rate options, such as:

  • Principal-and-interest home loans
  • Interest-only home loans
  • Variable interest rates
  • Fixed interest rates

Some mortgages also come with (permanent) interest rate discounts and (temporary) introductory interest rates offers. In some cases, Bank Australia will offer discounted interest rates, fee waivers and discounts across a host of other products when customers package their Bank Australia products.

Many Bank Australia home loans include redraw facilities, allowing you to borrow funds you’ve already repaid. Some home loans also provide flexible repayments.

Bank Australia home loans rates tend to be on the lower end of the market, while their fees lean toward the higher end.

Bank Australia home loan rates

Bank Australia home loan rates differ from product to product, but they are generally very low, moderately low or moderate.

One reason that Bank Australia offers competitive rates is that it’s owned by its customers. Without shareholders, it doesn’t have the same demand to maximise profits. Bank Australia’s lower rates differentiate it from Australia’s big four banks, which charger higher rates and are seen as a safe and convenient option.

Bank Australia offers very low to moderately low interest rates for owner-occupier standard loans, while interest rates for lines of credit and bridging loans tend to be moderately high.

Interest rates also differ between owner-occupier and investment mortgages. Bank Australia generally charges lower rates on owner-occupier loans and higher rates for investment loans. Both principal-and-interest and interest-only investor loans are typically charged moderate interest rates.

Bank Australia home loans review

Although Bank Australia is based in Victoria, it provides home loans to borrowers across the country.

Bank Australia has a home loan product for a range of borrowers, including owner-occupiers, property investors and self-managed superannuation fund investors. Customers can choose from a variety of interest rate options, such as variable and fixed rates. Bank Australia fixed home loans can be secured for one, two, three or five years.

Compared to Australia’s big four banks, Bank Australia provides reasonably low interest rates, with owner-occupier home loans as the cheapest option.

While Bank Australia’s rates generally sit within the low and moderate categories, their fees are moderately high. Upfront and establishment fees are relatively high, and some Bank Australia home loans charge ongoing fees for loan variation requests, overdrafts and offset services.


Fixed rate

A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.

Variable rate

A variable rate home loan is one where the interest rate can and will change over the course of your loan. The rate is determined by your lender, not the Reserve Bank of Australia, so while the cash rate might go down, your bank may decide not to follow suit, although they do broadly follow market conditions. One of the upsides of variable rates is that they are typically more flexible than their fixed rate counterparts which means that a lot of these products will let you make extra repayments and offer features such as offset accounts.

Split rates home loans

A split loan lets you fix a portion of your loan, and leave the remainder on a variable rate so you get a bet each way on fixed and variable rates. A split loan is a good option for someone who wants the peace of mind that regular repayments can provide but still wants to retain some of the additional features variable loans typically provide such as an offset account. Of course, with most things in life, split loans are still a trade-off. If the variable rate goes down, for example, the lower interest rates will only apply to the section that you didn’t fix.


^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

Compare your product with the big 4 banks, or add more products to compare
As seen on