Arab Bank of Australia Home Loans

Rates and Fees verified correct on December 5th, 2016
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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.

Rates last updated December 5th, 2016
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Loan purpose
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Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
Arab Bank Australia The Basics Home Loan - Variable
A no-frills, basic home loan do you don't need to pay for any extras you don't need.
5.09% 5.22% $600 $8 monthly ($96 p.a.) 95% More info
Arab Bank Australia Revolving Line of Credit
Get access to your equity for a variety of reasons.
6.20% $0 $0 p.a. 90% More info
Arab Bank Australia HeadStart Home Loan - Variable Rate
Enjoy a discounted interest rate for the first year of your loan.
3.90% 4.57% $600 $8 monthly ($96 p.a.) 95% More info
Arab Bank Australia Fixed Rate Home Loan - 2 Year
Fix in a rate for two years and enjoy security.
3.94% 4.92% $600 $8 monthly ($96 p.a.) 95% More info
Arab Bank Australia Fixed Rate Home Loan - 3 Year
Lock in a rate which won't change over three years.
4.58% 4.99% $600 $8 monthly ($96 p.a.) 95% More info
Arab Bank Australia Fixed Rate Home Loan - 5 Year
Enjoy the security of a rate which won't change for five years.
4.88% 5.04% $600 $8 monthly ($96 p.a.) 95% More info
Arab Bank Australia Fixed Rate Home Loan - 1 Year
A flexible one year fixed rate home loan.
4.38% 5.06% $600 $8 monthly ($96 p.a.) 95% More info
Arab Bank Australia Fixed Rate Home Loan - 4 Year
Enjoy a rate which won't fluctuate over four years.
4.78% 5.02% $600 $8 monthly ($96 p.a.) 95% More info
Arab Bank Australia Essentials Home Loan - Variable
A flexible variable rate home loan with redraw facility.
5.19% 5.23% $600 $0 p.a. 95% More info
Arab Bank Australia Bridging Loan - With Interest Capitalisation
A home loan to cover the cost of your new home while selling your old home.
7.70% 7.76% $600 $0 p.a. 95% More info
Arab Bank Australia Bridging Loan - Standard
Get funding for a new home before you've sold your old one.
6.70% 6.76% $600 $0 p.a. 95% More info
Who is Arab Bank Australia?

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.

How to find a home loan that is Sharia compliant.

What pros and cons do I need to think about?

Pros

  • 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.

Cons

  • 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.

How do I apply for an Arab Bank Australia home loan?

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?

Personal information

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

Property information

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.

Financial information

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.

Enquire with a mortgage broker today


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This page was last modified on 25 October 2016 at 14:12.

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4 Responses to Arab Bank of Australia Home Loans

  1. Default Gravatar
    Faridullah | November 8, 2014

    Salam alikum, I recently purchased a house in Perth. I am an overseas worker and didn’t know about any islamic bank.
    Now I am stressful because the way I am paying mortgage in not according to sharia. I need your help if I can transfer my existing mortgage to an Islamic bank and pay according to sharia?

    • Staff
      Elizabeth | November 10, 2014

      Hi Faridullah,

      Thanks for your question.

      Transferring your existing mortgage to another lender is referred to as refinancing and is possible to do. You might want to take a look at this page which takes you through the steps associated with refinancing. Before you start, take a look at the break costs and exit fees your current lender will charge you to leave your home loan to see if its a financially viable option.

      I hope this has helped.

      Thanks,

      Elizabeth

    • Default Gravatar
      | November 11, 2014

      Thanks for your reply. I want to refinance but my question is that I want to borrow according to sharia, just like other islamic banks are doing Overseas. Reply if you can be of any help in this matter.

    • Staff
      Elizabeth | November 11, 2014

      Hi Faridullah,

      You’ll need to get in contact with Arab Bank directly to see if they are able to lend to you in this way, as I’m unaware of the specifics of sharia. If they can’t offer you this, you may want to get in touch with a mortgage broker who might be able to offer you other options for lenders.

      I hope this has helped.

      Thanks,

      Elizabeth

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