Bank Australia Basic Home Loan

Rates and Fees verified correct on December 4th, 2016

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

Limited time fee waiver offer

Bank Australia has waived the $595 establishment fee for owner occupier new mortgage applications received before 31 December 2016.

Other terms and conditions may apply with this loan.

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.

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.

Interest Rate Max Insured LVR Max LVR
5 Years Fixed Rate (Investor)
5.04% p.a.
Comparison Rate
4.79% p.a.
80% 80%
Investment Variable
4.54% p.a.
Comparison Rate
4.58% p.a.
80% 80%
Variable (Owner Occupier)
3.59% p.a.
Comparison Rate
3.60% p.a.
80% 80%
1 Year Fixed Rate (Investor)
4.84% p.a.
Comparison Rate
4.61% p.a.
80% 80%
3 Years Fixed Rate (Investor)
4.84% p.a.
Comparison Rate
4.66% p.a.
80% 80%
1 Year Fixed Rate (Owner Occupier)
3.79% p.a.
Comparison Rate
4.20% p.a.
80% 80%
2 Years Fixed Rate (Investor)
4.74% p.a.
Comparison Rate
4.62% p.a.
80% 80%
2 Years Fixed Rate (Owner Occupier)
3.74% p.a.
Comparison Rate
4.16% p.a.
80% 80%
3 Years Fixed Rate (Owner Occupier)
3.74% p.a.
Comparison Rate
4.12% p.a.
80% 80%
5 Years Fixed Rate (Owner Occupier)
4.04% p.a.
Comparison Rate
4.16% p.a.
80% 80%
Product NameBank Australia Basic Home Loan
Interest Rate TypeVariable or Fixed
Comp Rate^ (p.a.)
Minimum Loan Amount$100,000
Maximum Loan Amount$9,999,999
Maximum Loan Term30 years
Maximum LVR80%
Maximum Insured LVR80%
Mortgage Offset AccountNo
Mortgage 100% OffsetNo
Loan Redraw FacilityYes
Split Loan FacilityNo
Fixed Interest OptionNo
Loan PortableYes
Suitable for InvestmentYes
Extra RepaymentYes
Available as equity loan/line of creditNo
Repayment TypePrincipal & 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

  • Application fee of $0.
  • $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 for the new mortgage applications received until 31 December 2016.
  • 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.

Bank Australia Basic Home Loan Interest Rate History vs RBA Cash Rate Graph

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This page was last modified on 6 October 2016 at 13:00.

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Bank Australia Basic Home Loan

  • Interest Rate

    N/A

  • Comparison Rate

    N/A

  • App Fee / Annual Service Fee

    $0 / $0

  • Max LVR

    80%

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