Bank Australia Home Loans

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.

Bank Australia home loans

Basic Home Loan Special (LVR < 80%)SpecialEstablishment fee waived for Variable Basic Home Loans until 30 September 2018
Advertised rate
3.65%
Variable
Upfront fee
$0
Comparison rate*
3.66%
Ongoing fee
$0
Compare
Basic Home Loan (LVR < 80%)SpecialEstablishment fee waived for Variable Basic Home Loans until 30 September 2018
Advertised rate
3.86%
Variable
Upfront fee
$0
Comparison rate*
3.87%
Ongoing fee
$0
Compare
Basic Home Loan Fixed 1 YearSpecialApply for a 3 month break in repayments for environmental upgrades to your home
Advertised rate
3.89%
Fixed - 1 year
Upfront fee
$595.00
Comparison rate*
3.91%
Ongoing fee
$0
Compare
Basic Home Loan Fixed 3 YearsSpecialApply for a 3 month break in repayments for environmental upgrades to your home
Advertised rate
3.94%
Fixed - 3 years
Upfront fee
$595.00
Comparison rate*
3.92%
Ongoing fee
$0
Compare
Basic Home Loan Fixed 2 YearsSpecialApply for a 3 month break in repayments for environmental upgrades to your home
Advertised rate
3.99%
Fixed - 2 years
Upfront fee
$595.00
Comparison rate*
3.93%
Ongoing fee
$0
Compare
Basic Home Loan Fixed 5 YearsSpecialApply for a 3 month break in repayments for environmental upgrades to your home
Advertised rate
4.44%
Fixed - 5 years
Upfront fee
$595.00
Comparison rate*
4.14%
Ongoing fee
$0
Compare
Package Premium Home Loan Fixed 2 Years (LVR < 80%)SpecialApply for a 3 month break in repayments for environmental upgrades to your home
Advertised rate
3.79%
Fixed - 2 years
Upfront fee
$0
Comparison rate*
4.33%
Ongoing fee
$350 annually
Compare
Package Premium Home Loan Fixed 3 Years (LVR < 80%)SpecialApply for a 3 month break in repayments for environmental upgrades to your home
Advertised rate
3.89%
Fixed - 3 years
Upfront fee
$0
Comparison rate*
4.33%
Ongoing fee
$350 annually
Compare
Package Premium Home Loan Fixed 1 Year (LVR < 80%)SpecialApply for a 3 month break in repayments for environmental upgrades to your home
Advertised rate
3.84%
Fixed - 1 year
Upfront fee
$0
Comparison rate*
4.35%
Ongoing fee
$350 annually
Compare
Package Premium Home Loan ($100k-$400k, LVR < 80%)SpecialApply for a 3 month break in repayments for environmental upgrades to your home
Advertised rate
4.02%
Variable
Upfront fee
$0
Comparison rate*
4.37%
Ongoing fee
$350 annually
Compare
Package Premium Home Loan Fixed 5 Years (LVR < 80%)SpecialApply for a 3 month break in repayments for environmental upgrades to your home
Advertised rate
4.39%
Fixed - 5 years
Upfront fee
$0
Comparison rate*
4.52%
Ongoing fee
$350 annually
Compare
Package Premium Home Loan Fixed 3 Years (LVR 80%-95%)SpecialApply for a 3 month break in repayments for environmental upgrades to your home
Advertised rate
4.14%
Fixed - 3 years
Upfront fee
$0
Comparison rate*
4.58%
Ongoing fee
$350 annually
Compare
Package Premium Home Loan Fixed 1 Year (LVR 80%-95%)SpecialApply for a 3 month break in repayments for environmental upgrades to your home
Advertised rate
4.09%
Fixed - 1 year
Upfront fee
$0
Comparison rate*
4.59%
Ongoing fee
$350 annually
Compare
Package Premium Home Loan Fixed 2 Years (LVR 80%-95%)SpecialApply for a 3 month break in repayments for environmental upgrades to your home
Advertised rate
4.19%
Fixed - 2 years
Upfront fee
$0
Comparison rate*
4.60%
Ongoing fee
$350 annually
Compare
Package Premium Home Loan ($100k-$400k, LVR 80%-95%)SpecialApply for a 3 month break in repayments for environmental upgrades to your home
Advertised rate
4.27%
Variable
Upfront fee
$0
Comparison rate*
4.61%
Ongoing fee
$350 annually
Compare
Premium Home Loan Fixed 3 Years (LVR < 80%)SpecialApply for a 3 month break in repayments for environmental upgrades to your home
Advertised rate
4.04%
Fixed - 3 years
Upfront fee
$595.00
Comparison rate*
4.66%
Ongoing fee
$0
Compare
Premium Home Loan Fixed 2 Years (LVR < 80%)SpecialApply for a 3 month break in repayments for environmental upgrades to your home
Advertised rate
4.09%
Fixed - 2 years
Upfront fee
$595.00
Comparison rate*
4.73%
Ongoing fee
$0
Compare
Premium Home Loan Fixed 1 Year (LVR < 80%)SpecialApply for a 3 month break in repayments for environmental upgrades to your home
Advertised rate
3.99%
Fixed - 1 year
Upfront fee
$595.00
Comparison rate*
4.78%
Ongoing fee
$0
Compare
Basic Investment Loan Fixed 2 Years (Principal and Interest)
Advertised rate
4.24%
Fixed - 2 years
Upfront fee
$595.00
Comparison rate*
4.80%
Ongoing fee
$0
Compare
Basic Investment Loan Fixed 3 Years (Principal and Interest)
Advertised rate
4.44%
Fixed - 3 years
Upfront fee
$595.00
Comparison rate*
4.80%
Ongoing fee
$0
Compare
Premium Investment Loan Fixed 2 Years (Principal and Interest)
Advertised rate
4.34%
Fixed - 2 years
Upfront fee
$595.00
Comparison rate*
5.06%
Ongoing fee
$0
Compare
Package Premium Investment Loan Fixed 3 Years (Principal and Interest)
Advertised rate
4.39%
Fixed - 3 years
Upfront fee
$0
Comparison rate*
5.14%
Ongoing fee
$350 annually
Compare
Package Premium Investment Loan Fixed 2 Years (Principal and Interest)
Advertised rate
4.19%
Fixed - 2 years
Upfront fee
$0
Comparison rate*
5.15%
Ongoing fee
$350 annually
Compare
Pros:
  • 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.
Cons:
  • 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.

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