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.
Limited time fee waiver offer
Bank Australia is waiving its $595 establishment fee for this loan until 31 December 2018. Other terms and conditions may apply with this loan.
Who is eligible for Bank Australia's advertised Basic Home Loan rate?
Existing customers must borrow more than $100,000 in new loan funds to qualify for Bank Australia's Basic Home Loan rate. Existing borrowers taking out extra funds that total less than $100,000 will continue on their current 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 | Yes |
| 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 |
|---|---|
| Valuation Fee | $250 |
| Ongoing Fees | $0 p.a. |
| 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.
What do I need to know about this loan?
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.
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?
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 December 2018.
- 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 do I 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.
