Bank Australia Fixed Rate Home Loan

Rates and Fees verified correct on December 9th, 2016

The Bank Australia Fixed Rate home loan allows you to properly plan for your future with the security of a fixed rate.

Fixed interest rates give you some form of certainty since you are well aware of exactly what your repayments are for a fixed period of time. This loan allows you to enjoy a fixed rate interest rate on your home loan for a specified period of time.

Important news

bankmecu is now trading as Bank Australia, and continues to offer service and many products to customers.

Interest Rate Max Insured LVR Max LVR
1 Year Fixed Rate (Owner Occupier)
3.89% p.a.
Comparison Rate
4.70% p.a.
95% 80%
1 Year Fixed Rate (Investors)
4.94% p.a.
Comparison Rate
4.89% p.a.
95% 80%
2 Years Fixed Rate (Investors)
4.84% p.a.
Comparison Rate
4.88% p.a.
95% 80%
2 Year Fixed Rate (Owner Occupier)
3.84% p.a.
Comparison Rate
4.62% p.a.
95% 80%
3 Years Fixed Rate (Investors)
4.94% p.a.
Comparison Rate
4.91% p.a.
95% 80%
3 Year Fixed Rate (Owner Occupier)
3.84% p.a.
Comparison Rate
4.55% p.a.
95% 80%
5 Years Fixed Rate (Investors)
5.14% p.a.
Comparison Rate
5.01% p.a.
95% 80%
5 Year Fixed Rate (Owner Occupier)
4.14% p.a.
Comparison Rate
4.54% p.a.
95% 80%
Product NameBank Australia Premium Fixed Rate Home Loan
Interest Rate TypeFixed
Comp Rate^ (p.a.)
Minimum Loan Amount$25,000
Maximum Loan Amount$5,000,000
Minimum Loan Term1 year
Maximum Loan Term30 years
Maximum LVR80%
Maximum Insured LVR95%
Mortgage Offset AccountYes
Mortgage 100% OffsetYes
Loan Redraw FacilityYes
Split Loan FacilityYes
Fixed Interest OptionYes
Loan PortableNo
Suitable for InvestmentYes
Extra RepaymentYes
Available as equity loan/line of creditNo
Repayment TypePrincipal & Interest and Interest Only Options
Application Fee$595
Valuation Fee$0
Ongoing Fees$8 monthly ($96 p.a.)
Settlement Fee$0
Discharge Fee$250

Pros

  • No valuation fee, ongoing fee and settlement fee.
  • You can borrow up to 95% of the property value.

Cons

  • Establishment fee of $595.
  • A $250 discharge fee for closing the home loan accounts.

Things to consider about the Bank Australia Fixed Rate Home Loan

This home loan is a full documentation loan, meaning it requires the full range of income and employment evidence. It can be used for investment purposes, and purchasing a home.

This home loan has a fixed rate, meaning your rate and repayments won't change during the course of the fixed term, but keep in mind that a fixed rate home loan will attract hefty fees if paid out early.

Features of the Bank Australia Fixed Rate Home Loan

  • Loan terms: You can borrow up to 95% of the property's value with this loan, although keep in mind that borrowing more than 80% will see you pay Lender's Mortgage Insurance (LMI), a fee charged by your lender to protect them from risk.
  • Repayment pause: This feature allows you to stop repayments if you have a legitimate duration away from work such as sick leave or maternity leave. Bank Australia requires that the loan be established for 12 months and that you have a minimum Loan-to-Value Ratio (LVR) of 80% to qualify for Eco-Pause or 90% for Family-Pause.
  • Offset account: A 100% offset savings account is available and can allow you to reduce your loan amount significantly. Offset accounts are mainly transactional accounts that are linked into the home loan, with the balance offsetting the balance of your home loan. This offset account comes with a fee which is explained below.
  • Split loan option: You can enjoy the best of both worlds as far as your interest rate is concerned. The split loan option allows you to have part fixed and part variable interest rates. This means you can take advantage of both falling rates and the security of knowing part of your rate is fixed and therefore won't increase.
  • Redraw: Bank Australia allows you to make up to $20,000 in additional repayments on this loan each year without attracting fees, and you also have access to the extra funds with the redraw facility. This loan offers free redraw facility.

Fees

Fees you can avoid

  • Redraw fee: Bank Australia offers free redraw with this home loan.
  • Monthly fee: There are no monthly charges that apply to this loan.
  • Break fee: You can make additional repayments up to $20,000 without worrying about a break fee when you pay out the loan before term.
  • Lender’s Mortgage Insurance (LMI): LMI is avoidable when you take out a loan with a Loan-to-Value Ratio (LVR) that is less than 80%.
  • Offset account monthly fee: If you opt for the Offset account, you will be charged a monthly fee of $8.
  • LMI: If your LVR is above 80%, you will have to pay this insurance.
  • Break fee: This may be charged when your additional repayments go over the limit stated. bankmecu allows for additional repayments of up to $20,000 per year with this loan.

Fees you can’t avoid

  • Establishment fee: $595. There's a fee of $595 charged to cover the costs of processing your loan application.

How to apply for the Bank Australia Fixed Rate Home Loan

To be eligible for the Bank Australia Fixed Rate home loan, you must be:

  • 18 years or older: Loan applicants must meet the age requirement of 18 years. This is the general age requirement with most lenders.
  • An Australian resident or citizen: Another eligibility requirement that comes with this home loan is that you must be a permanent Australian resident or citizen.

You will also need the following documentation:

  • Personal identification: If you are not a current account holder with Bank Australia, they will need to electronically verify your identity. You will need to provide information such as your driver’s license number to assist with the verification.
  • Financial information: The following information is required to verify your financial standing: income (both gross and net), source of income, assets and liabilities.

Bank Australia Fixed Rate home loan allows you to enjoy fixed interest for periods of one to three years and you can also split your loan to enjoy both fixed and variable rates. Compare these loan features to other similar loans.


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


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This page was last modified on 18 August 2015 at 12:06.

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Bank Australia Premium Fixed Rate Home Loan

  • Interest Rate

    N/A

  • Comparison Rate

    N/A

  • App Fee / Annual Service Fee

    $595 / $8

  • Max LVR

    80%

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