Bank Australia Premium Home Loan

Rates and Fees verified correct on December 8th, 2016

Get a lower rate the more you borrow

Imagine being rewarded for borrowing larger sums of money. The Bank Australia Premium Home Loan does just this, offering a rate that gets lower as you borrow more, with the biggest discount offered when borrowing more than $750,000.

Important news

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

Along with all of Bank Australia's home loan options, the Premium Home Loan features a biodiversity offset aimed at supporting land conservation efforts in Australia. The offset means that Bank Australia will offset an equivalent amount of land according to the same amount of land being constructed on.

Interest Rate Max Insured LVR Max LVR
$400k to $700k (Investor)
4.84% p.a.
Comparison Rate
4.88% p.a.
95% 80%
$700k + (Owner Occupier)
4.74% p.a.
Comparison Rate
4.78% p.a.
95% 80%
$100k to $400k (Investor)
4.84% p.a.
Comparison Rate
4.88% p.a.
95% 80%
$100k to $400k (Owner Occupier)
4.74% p.a.
Comparison Rate
4.78% p.a.
95% 80%
$400k to $700k (Owner Occupier)
4.74% p.a.
Comparison Rate
4.78% p.a.
95% 80%
$700k + (Investor)
4.84% p.a.
Comparison Rate
4.88% p.a.
95% 80%
Product NameBank Australia Premium Home Loan
Interest Rate TypeVariable
Comp Rate^ (p.a.)
Minimum Loan Amount$100,000
Maximum Loan Term30 years
Maximum LVR80%
Maximum Insured LVR95%
Mortgage Offset AccountYes
Mortgage 100% OffsetYes
Loan Redraw FacilityYes
Split Loan FacilityYes
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$595
Lender's Legal Fee$0
Valuation Fee$0
Ongoing Fees$8 monthly ($96 p.a.)
Settlement Fee$0
Discharge Fee$250
Early Termination Fee$0

Pros

  • 100% offset account.
  • Redraw facility.
  • Borrow up to 95% LVR.

Cons

  • $8 per month account fee.
  • There is an application fee of $.
  • There is $250 discharge fee when closing your loan accounts.

Things to consider about the Premium home loan

Discounts apply as the loan amount increases, with amounts starting from $100,000 and available beyond amounts of $750,000. The Premium Home Loan allows for interest-only repayments, which may be an attractive option for borrowers applying for a bigger loan or who already have home loan repayments to take into account.

Bank Australia's Premium Home Loan is available to borrowers as an investment loan, not just for purchasing a home. Besides the ability to make additional repayments to help borrowers pay off their loans quicker, Bank Australia also allows for a repayment pauses where borrowers can defer their home loan payments for up to three months.

The Premium Home Loan is also available as a package when the borrowed amount is equal to or exceeds $250,000. The package includes discounted interest rates, a $350 package fee (instead of the $595 establishment fee that applies to the loan on its own) and free building insurance for three months.

Features of the Bank Australia Premium Home Loan

  • Loan amount. The Premium Home Loan is available with a minimum loan amount of $100,000. You can borrow for a maximum period of up to 30 years. Keep in mind that different borrowing amounts will come with different interest rates.
  • Available as a package. The Premium Home Loan is available as a package for loan amounts over $250,000. Borrowers are charged a discounted annual package fee instead of the establishment fee.
  • 100% offset account. For a monthly fee of $8, a 100% offset account helps borrowers reduce the interest paid on the Premium Home Loan.
  • Additional repayments. Borrowers can make additional repayments to pay off the loan over a shorter period.
  • Free redraw. Borrowers have access to a free redraw facility via internet banking or through a phone request so they can get access to extra repayments which have been made. Funds can be deposited into this account and then redrawn at any time. However, this feature is not available to borrowers who choose interest-only repayments.
  • Repayment frequency. Weekly, fortnightly and monthly repayment options are available so you can pay your loan off in a structure that suits you and your salary.
  • Repayment pause. If the loan has been established for 12 months, borrowers can defer repayments for up to three months. A maximum Loan-to-Value Ratio (LVR) of 90% applies to the Family-Pause.

Fees

Fees you can avoid

  • Monthly fee: $0. No monthly fee is charged on the Premium Home Loan.
  • Additional valuation fee: $150. The first valuation is covered by the establishment fee, but any further valuations requested by the borrower incur this additional fee.
  • Loan variation fee: $150. This fee will be charged if borrowers choose to switch from the Premium Home Loan to another home loan product.
  • Lenders Mortgage Insurance (LMI): $50. When borrowers apply for a loan with more than 80% LVR, Bank Australia charges this fee to cover the administration of securing LMI. This charge is in addition to the actual LMI fee.

Fees you can’t avoid

  • Establishment fee: $595. This amount covers the initial administration and arrangement of the loan, including creating the borrower's file and all supporting documentation.
  • Loan discharge fee: $250. Once the loan has been repaid, a loan discharge fee will be levied to cover the bank's administration services.
  • Offset service fee: $8. This fee is charged for the use of the offset account facility.

How to apply for the Premium home loan

Only Australian citizens or permanent residents in Australia are eligible for the Premium Home Loan. Prospective borrowers have to be 18 years of age or older and have to be able to prove a source of regular income.

The loan amount approved will be determined by the amount earned and whether or not the applicant is able to make repayments. Credit history at Bank Australia and/or other institutions, as well as additional assets are taken into account.

Essential documents include:

  • Identification in the form of a passport, Medicare card or driver's licence
  • Proof of salary before and after taxes, as well as other sources of income
  • Other loan balances, credit-card repayments and existing overdrafts

Applications can be submitted online, by post or in person at one of the bank's offices.

Besides reasonable interest rates and flexible repayment options, signing on for the Premium Home Loan means contributing to social and environmental awareness in Australia. Add it to your comparison today.


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


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This page was last modified on 21 December 2015 at 14:15.

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Bank Australia Premium Home Loan

  • Interest Rate

    N/A

  • Comparison Rate

    N/A

  • App Fee / Annual Service Fee

    $595 / $8

  • Max LVR

    80%

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