Bank Australia Basic Home Loan

Get the home you’ve always wanted with Bank Australia’s straightforward, Basic Home Loan at a competitive variable interest rate.

There’s no point paying high fees and interest rates on a home loan for features you won’t use. Bank Australia’s Basic Home Loan is a no frills loan which is light on features, fees and interest rates. It has a competitive variable interest rate and allows additional repayment capabilities. It also includes a repayment pause option, flexible loan repayment terms and no monthly fee to help you get the funds that you need with little hassle or high expense.

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Review by

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206) and a Tier 1 Generic Knowledge certification (RG 146).

Expert review

The Basic Home Loan, though designed for personal use for the building or purchase of a new home, is also available for investment purposes. With a minimum loan amount of $100,000, this loan can be used by full doc or low doc borrowers, though you may be subjected to a higher interest rate or fee if you cannot provide documentation of your income.

This loan has a maximum term of 30 years, with a repayment pause available if needed. However, you should always make sure that you can make your payments, even with a low interest rate like the one offered with this loan, before you apply.

About this loan

What are the features and benefits 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).

What fees and charges come with this loan?

  • Redraw Fee : $0 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.
  • Establishment Fee: $595. To open this loan, you will be charged an establishment fee that will cover any administration costs attached to preparing documents.
  • 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.

Who is Bank Australia?

Bank Australia has been in business since 1957. It is a customer-owned bank without external shareholders. This allows Bank Australia to focus primarily on its customers' needs and lets them put profits back into its products and services.

The bank is also committed to responsible lending and investment, which includes investing in community projects and refusing to lend to the fossil fuel industry.

How to apply

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.

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    Default Gravatar
    February 11, 2023

    what is your IO rate for investment

      February 21, 2023

      Hi Khoi,

      You can find the interest-only rates for this product by clicking the dropdown immediately below the title of the page (where it says “Bank Australia Basic Home Loan” up top).

      I hope this helps.


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