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How to choose the best home loan for you? Home Loan Review- Bank Australia

first home loan deposit scheme
Let BFG help you decide if Bank Australia has the right loan for you personal financial goals.

Ever wondered why all the hype around Bank Australia?’ Let BFG’s comprehensive Bank Australia home loan review be your guide!

Founded as the CSIRO Co-operative Credit Society in 1957, Bank Australia has grown through the merging of 27 other credit unions to become Australia’s oldest and largest member-owned bank. Because Bank Australia is a credit union, it means their customers own them. What this means for you is that any profits earned are directly returned to customers through better interest rates and lower fees. Also, any investments made by Bank Australia are used to effect positive environmental and social change, and the bank has a firm stance on refusing to fund fossil fuels. 

What Products do Bank Australia Offer?

Bank Australia has five comprehensive personal home loan products tailored to your individual needs: 

Premium Home Loan Package

With a competitive interest rate of 2.63% p.a. and Comparison Rate of 3.02% p.a., Bank Australia’s Premium home loan package is a competitive market offering, with lots of perks!

One of the most significant benefits to the premium package is that Bank Australia is one of only a handful of banks offering a 100% offset account against both fixed-rate and variable home loan products. What this means is that you’re able to reduce interest paid by maximizing the amount held in your offset account. 

Not only does the Premium Home Loan package offer a 100% mortgage offset account, but it also provides fee waivers. Both Bank Australia’s everyday banking products and their Platinum Rewards Visa Credit Card, (which features a 0% interest rate for 12 months on balance transfers) are fee-free for those who take out a Premium Home Loan. 

Confused about offset accounts? Or fixed-rate v. variable? Click here to access our helpful home loan fact sheet. 

Basic Homeloan Package

The Bank Australia Basic Homeloan package offers a competitive interest rate of as low as 2.59% p.a. (with a Comparison Rate 2.63% p.a.) for eligible buyers.

The 2.59% p.a rate is available for Principal and Interest repayments with a maximum 70% LVR (with minimum new borrowings requirements) for borrowers who

  • submit their loan application on or after 10 September 2020 but before 31 December 2020; and
  • settle on their Bank Australia home loan by 31 March 2021.

If these criteria suit your situation, it’s a great way to get a low rate home loan with a lender who, for each home loan established, protects an equivalent amount of land on the Bank Australia Conservation Reserve, helping to offset the environmental impact of land clearing. 

Bank Australia Clean Home Loan- as part of the Premium Homeloan Package 

The Bank Australia Clean home loan is the first of its kind in the industry. A home loan that offers clients a discount off their interest rate if purchasing or refinancing an eligible property. 

However, there is a catch; your property must be a NatHERS certified 7 Star or higher home, and/or you must be planning sustainable upgrades as per eligibility guidelines. However, once this requirement is reached, clients are eligible for a 0.50% p.a discount on their interest rate for up to five years. 

Not only is the Bank Australia Clean Home package a fantastic offer for those who are eligible, but it also features all the perks of the Premium Home Loan package. These include fee waivers on everyday Bank Australia products as well as their Platinum Rewards Visa Credit Card.

Line of Credit 

Bank Australia’s line of credit is available to both new and existing customers. It offers a competitive interest rate of 4.16% p. a, with additional perks, such as:

  •  A pre-approval limit, so funds are available when you need them most.
  • You’re only charged interest on the credit amount you use.
  • The ability to make lump sum payments and to redraw up to your limit at any time.

Bridging 

Bank Australia also offers a bridging home loan option for when funds are needed for construction or purchase. This option is available to both new and existing customers and welcomes extra and lump-sum payments over the 12-month term, allowing you to get into your new home faster. 

Why choose a Bank Australia Home Loan?

It can overwhelming deciding which bank is best suited to your needs. Let our quickfire review of Bank Australia help you decide if they’re the right institution for you!

Pros

  • Bank Australia is approved on the panel for the FIrst Home Loan Deposit Scheme. 
  • Bank Australia’s Clean Home Loan is the first of its kind in the industry with government-backed support.
  • Bank Australia is Australia’s pre-eminent responsible financial institution committed to effecting social and environmental change.
  • They have an Australia-wide ATM and branch network, with no ATM fees for
  • Discounts available when bundling products together
  • Good for refinancing to a basic loan package

Cons

  • The annual fees can be a little higher on some products compared to other lenders on the market.
  • Early exit fees apply to some of their products.

Disclaimer: The information provided is general in nature and does not constitute financial advice. Please speak to us for recommendations on your individual circumstance and requirements.