Bank Australia Premium Home Loan
Get a lower rate the more you borrow
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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.
About this loan
What are the features and benefits of the Bank Australia Premium Home Loan?
- Loan amount. The Premium Home Loan is available with a minimum loan amount of $10,000. 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.
What fees and charges come with this loan?
- Monthly fee: $8. No monthly fee is charged on the Premium Home Loan.
- Additional valuation fee: $250. The first valuation is covered by the establishment fee, but any further valuations requested by the borrower incur this additional fee.
- 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.
- 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 applyOnly 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.