Arab Bank Australia offers competitive interest rates on their home loans and want to help find the right home loan for you.
Arab Bank Australia is a subsidiary wholly owned by Arab Bank Plc. and first operated in 1986. It currently has 10 branches across Melbourne and Sydney and it offers financial services such as everyday banking, international trade and property. Arab Bank boasts the world’s largest Arab banking branch network, with more than 500 branches across 30 countries.
Looking for a Islamic home loan that is Sharia compliant? Read our interview with Russell Murphy, General Manager of Iskan Finance.
Awards earned by Arab Bank Australia
Arab Bank Australia’s various products have won numerous awards in the past, and below is a list of the awards its home loans have received.
- Money Magazine Best of the Best awards 2009. Arab Bank’s three-year fixed home loan won second place.
- Money Magazine Best of the Best awards 2009. Arab Bank’s five-year fixed home loan won second place.
- Money Magazine Best of the Best awards 2007. Arab Bank won the best 'three-year fixed home loan' award.
- Personal Investor Magazine, 2002. Arab Bank won gold in the ‘best residential home loan fixed for two years’ category.
Arab Bank Australia gives its customers a number of home loan alternatives from which to choose, including both variable rate and fixed rate options.
Some loans give customers the ability to opt for discounted interest rates for an initial promotional period, while some come with features and flexibility that allow borrowers to pay their loans off as quickly as they want to. Arab Bank also has trained relationship managers to guide you through the home loan process to ensure you get the right assistance.
What can they offer me?
HeadStart home loan
The HeadStart Home Loan is ideal for people who are looking for some kind of a breather during the early stages of repaying a loan. It offers borrowers a discounted interest rate for the initial period of the loan, and after the introductory period this reverts to a competitive variable rate. This home loan allows weekly, fortnightly, and monthly repayments; comes with a redraw facility; lets you make extra repayments; and also allows repayment holidays.
Essentials home loan
The Essentials home loan offers a competitive interest rate without locking you into a fixed rate for a given time period. This loan gives borrowers a range of features that enables them to pay the loan off as quickly as possible, giving them the ability to make as many repayments as they want. Just like the previous alternatives, this loan also gives you the option to make weekly, fortnightly and monthly repayments, and it offers repayment holidays. In addition, this loan also includes a redraw facility.
The Basics home loan
The Basics home loan is Arab Bank Australia’s variable rate home loan with a competitive interest rate. This home loan is structured to simplify the process of borrowing money while also trying to make it affordable. This loan is ideal for both investors and regular borrowers. This loan also allows weekly, fortnightly and monthly repayments; repayment holidays; extra repayments; and it also comes with a redraw facility.
Fixed Rate home loan
This Fixed Rate home loan varies from most other fixed rate home loans because it gives borrowers the ability to enjoy a fixed rate for a longer-than-average initial period. You can then extend the fixed rate period or switch to the basic home loan’s variable rate. This loan is suitable for people who have fixed incomes or budgets and are looking for fixed repayments in the near future. You can make weekly, fortnightly and monthly repayments. The interest rate varies depending on the chosen time period of the loan.
Other home loans
In addition to the home loans mentioned above, Arab Bank Australia also offers a personal revolving line of credit, a bridging loan, and a bridging loan with interest capitalisation.
What pros and cons do I need to think about?
- Discounted interest rate. Arab Bank Australia offers its eligible customers discounted interest rates, not only through its variable rate loans but with its fixed rate loans as well.
- Special offers. Arab Bank Australia offers periodical specials for its customers to help them save money.
- Insurance. Arab Bank Australia’s partnership with Allianz gives its customers some affordable yet high quality insurance products to choose from, and these include home and contents insurance as well as landlord insurance.
- ABA online. Arab Bank Australia’s online portal gives you easy access to plenty of useful information. The website incorporates loan calculators, savings calculators and a home loan fact sheet. You can download an application form for your home loan through their website, and once you become an Arab Bank Australia borrower you can access all your account-related details online.
- Not many Australian branches. Arab Bank Australia’s physical presence is limited to Melbourne and Sydney, which is a definite drawback, especially for people located outside these two cities.
If you would like to apply for a home loan from Arab Bank Australia, please speak to a mortgage broker.
What information do I need to provide?
When you apply for an Arab Bank Australia home loan you have to provide proof of identity that the bank can verify. What Arab Bank Australia requires includes:
- A copy of your passport, Australian driving licence, or birth certificate
- A copy of your current water rate notice or council rate notice
The bank also needs documents relating to the property in question:
- If you are buying a new property, you have to submit a copy of the contract of sale.
- If the loan is for refinancing, you have to submit a copy of the land rates notice that proves ownership of land, and copies of transactions from the existing loan dating back six months.
Lenders will look into an applicant's financial history before approving a loan, and this is no different when you apply for an Arab Bank Australia home loan. You will have to provide the following financial details:
- Wage or salary earners have to submit tax returns for the preceding two years, as well as their last three payslips or a letter of employment.
- Self-employed applicants have to submit tax returns or financial statements for the preceding three years.
- All details of funds in bank accounts, investments and assets.
- People who own rental property have to provide their last three rental income statements.
- All details of liabilities like loans, leases, personal debts and credit cards.
- Contact details of your solicitor or conveyancer.
If you’re still not sure if any of Arab Bank Australia’s home loans will work for you, compare your options to ensure you get the right home loan for your needs.