Get the home you’ve always wanted with Bank Australia’s straightforward, Basic Home Loan at a competitive variable interest rate.
| Product Name | Bank Australia Basic Home Loan |
|---|---|
| Interest Rate Type | Variable or Fixed |
| Comp Rate^ (p.a.) | |
| Minimum Loan Amount | $100,000 |
| Maximum Loan Amount | $9,999,999 |
| Maximum Loan Term | 30 years |
| Maximum LVR | 80% |
| Maximum Insured LVR | 80% |
| Mortgage Offset Account | No |
| Mortgage 100% Offset | No |
| Loan Redraw Facility | Yes |
| Split Loan Facility | No |
| Fixed Interest Option | No |
| Loan Portable | Yes |
| Suitable for Investment | Yes |
| Extra Repayment | Yes |
| Available as equity loan/line of credit | No |
| Repayment Type | Principal & Interest and Interest Only Options |
| Application Fee | $0 |
|---|---|
| Lender's Legal Fee | $0 |
| Valuation Fee | $250 |
| Ongoing Fees | $0 p.a. |
| Settlement Fee | $0 |
| Discharge Fee | $250 |
| Early Termination Fee | $0 |
Pros
- No ongoing fee.
- Redraw facility.
- Make extra payments.
Cons
- $250 discharge fee when closing your loan accounts.
- No offset account.
Features of the Bank Australia Basic Home Loan
- Loan amount. There’s no maximum amount for this loan, but the amount you’re approved for will depend on your individual circumstances. The minimum amount that can be borrowed on the Basic Home Loan is $100,000.
- Loan to Value Ratio (LVR). The maximum LVR for this loan is 80% if you’re willing to pay Lender’s Mortgage Insurance (LMI), or 80% if you want to avoid this extra charge.
- Biodiversity offset. Bank Australia strives to be environmentally-friendly with their loans, so they offer a biodiversity offset on most home loans to help offset the loss of vegetation and other biological diversity resulting in the building of new homes.
- Additional repayment capabilities. Additional repayments are accepted at any time for the duration of your loan at no additional cost (save for the discharge fee that applies when your loan is completely paid off).
Fees
Fees you can avoid
- Monthly Fee : $0.
- Redraw Fee : per transaction. Avoid this by not performing any redraw transactions during your loan term.
- Lenders Mortgage Insurance: Amount varies. If you borrow under 80% LVR, this cost will not apply to you.
Fees you can’t avoid
- Establishment Fee: $595. To open this loan, you will be charged an establishment fee that will cover any administration costs attached to preparing documents.This fee is currently waived until 31 August 2017.
- Discharge Fee: $100. The discharge fee takes care of the administration costs that are incurred when preparing the loan discharge documents. These are necessary once your loan is paid in full or discharged.
How to apply for this home loan
Always be sure to read the terms, conditions, and complete rate and fee schedule to ensure that this loan will be the best fit for what you need to borrow.
- Age and income: You must be over the age of 18, have a regular income and an exemplary credit score to apply for this loan.
- Residency and loan purpose: You must be an Australian citizen or permanent Australian resident, and be able to prove that you will be building, or buying, a new home within Australia.
Bank Australia asks that you also have the following documents handy when submitting an application online or in person:
- Income and financial details: You should bring in proof of your income, including what your income is before and after tax, as well as any other income sources (rental property, etc.). You will also be required to have information about your assets and liabilities.
- Employment details: Bank Australia will ask for your employer’s information. You’ll have to provide your employer’s name, address, and contact information to further verify your income details.
- Australian driver’s license or passport: If you are not an existing bankmecu client, you will be asked to provide your valid driver’s license, passport, or Medicare Card for identity verification.
Finding a loan that works best for your financial situation and suits your preferences for a loan is a must to help you build, or find, your new property.
The Basic Home Loan offers an environmentally friendly way to borrow funds, and, while it’s an option, you should always compare loans from Bank Australia and other providers to get what will work best for you and your finances.
