Buy a new home even if you haven't yet sold your existing one with the Bank Australia Bridging Loan
bankmecu is now trading as Bank Australia, and continues to offer service and many products to customers.
Bridging loans are useful short term loans that allow you to purchase a property while in the process of reselling your existing property. This loan is available for owner-occupiers who wish to acquire a new home while their current home is in the market and it can also be used for investment purposes.
This loan comes with a maximum loan term of 12 months.
|Product Name||Bank Australia Bridging Home Loan|
|Interest Rate Type||Variable|
|Comp Rate^ (p.a.)|
|Minimum Loan Amount||$10,000|
|Maximum Loan Amount||$9,999,999|
|Maximum Loan Term||1 year|
|Maximum Insured LVR||80%|
|Mortgage Offset Account||No|
|Mortgage 100% Offset||No|
|Loan Redraw Facility||Yes|
|Split Loan Facility||No|
|Fixed Interest Option||No|
|Suitable for Investment||Yes|
|Available as equity loan/line of credit||No|
|Repayment Type||Principal & Interest and Interest Only Options|
|Ongoing Fees||$0 p.a.|
- $0 monthly service fee.
- $0 valuation fee.
- There is $595 application fee.
- $250 discharge fee when closing the loan.
Things to consider about Bank Australia Bridging Loan.
Bank Australia offer competitive interest rates with this loan and that is a good thing as interest ultimately contributes to the real cost of the loan. An important consideration with any type of loan is the loan term and as you are already aware of all bridging loans are short term loans. This one gives you a 12-month loan term.
There are no restrictions on the type of borrowers who can apply for this bridging loan and it is eligible to both owner occupiers and those investing in properties as well.
Features of the Bank Australia Bridging Loan
- Competitive interest rates.
The Bank Australia Bridging Loan comes with a competitive interest rate of with a comparison rate of .
- Loan term.
This is a short term loan with a maximum loan term of 12 months.
The bridging loan is only available to Australian citizens or permanent residents and you must be above the age of 18 to apply. This loan can be taken out by owner-occupiers and property investors alike.
The bridging loan allows for highly flexible repayments. You can choose to forego making repayments on a monthly or weekly basis and instead choose to repay the loan when the loan term comes to expiry or when refinancing the loan. If you choose to make scheduled payments you can make them weekly, fortnightly or monthly. You can also make additional repayments at no extra cost to pay off your loan sooner.
Various fees apply with this loan, including a loan discharge fee, mortgage establishment fee and others.
Fees you can avoid
- Valuation fee:
You can avoid valuation fees as Bank Australia will not charge valuation fee for one property.
- Lenders Mortgage Insurance (LMI):
You can avoid paying for LMI if the loan amount is below 80% of your Loan-to-Value Ratio (LVR).
Fees you can’t avoid
- Loan discharge fee:
This fee applies when the loan is repaid in full and is charged as an administrative cost of closing your account. The fee also includes the cost of preparing documentation which is required in order to discharge your loan.
- Discharge fee – registration or settlement:
This fee is used to cover the preparation of your mortgage discharge form. The fee is charged when the borrower requests the bank to attend settlement or to arrange for registration.
This applies if you borrow above 80% LVR.
- Additional valuation:
If more than one property is used as security, you will have to pay for the additional valuation.
How to apply for the Bank Australia Bridging Loan
To be eligible for the Bank Australia Bridging Loan, you need to meet the following eligibility requirements:
You must be a permanent resident of Australia or a citizen to apply for the bridging loan.
- 18 years or old:
The minimum age requirement for this financial product is 18 years. Applicants of a younger age will not be eligible.
The loan application form will require you to provide the following details:
- Personal information:
Under personal details, information such as your name and contact information are required.
- Employment information:
You will be required to provide your employer’s name and their contact information.
- Financial information:
Your financial information is also required to ensure that you have the capacity to repay the loan. Information required includes: income, assets and more.
Bridging loans can help you to acquire new property even when you haven’t sold your current property. With Bank Australia, you have the flexibility of a year to finish moving into your new home.
Compare the different interest rates and features that bridging loan providers have to offer.