How to get a home loan from a bank which prides itself on transparency
Auswide Bank Ltd has been helping Australians achieve their financial goals for over 50 years through home ownership, wealth creation, and the provision of banking and financial services. With an extensive range of personal banking solutions, Auswide Bank offers affordable and flexible home loan packages, complemented with exceptional customer service. Auswide Bank customers receive the ongoing support of their Home Lending Consultants to assist them throughout their financial journey.
As Australia’s 10th locally owned bank trading on the ASX, Auswide Bank provides local banking solutions as an alternative to the ‘Big 4’ and their subsidiaries.
On 20th May 2016, Auswide Bank finalised a merger with Your Credit Union.
Your Credit Union products are still offered for the existing customers only.
Who is Auswide Bank?
Auswide Bank pride themselves on offering a diverse range of financial solutions that are issued directly or in affiliation with leading service providers via branches, strategic relationships and digital channels. Having recently converted from a building society to a bank in April 2015, Auswide Bank are investing in new banking technology, human resources and their facilities to ensure they remain valuable to both existing and new customers.
Striving to set themselves apart from the ‘Big 4’, Auswide Bank offer home loan packages with competitively low variable or fixed rates, inclusive features and flexible repayment terms.
Offering easy application and pre-approval processes for their home loans, Auswide Bank fosters the client experience by providing them with a direct line to an experienced Home Lending Consultant.
Home Loan Products Offered by Auswide Bank
Home Loan Plus
The Home Loan Plus package allows you to switch between variable and fixed interest rates with ease, and enjoy the benefits of a redraw facility and the ability to make additional payments and pay off your loan sooner.
Allowing you to borrow up to 95% of the purchase price, the Home Loan Plus offers competitive rates with the ability to switch without changing loans.
Offering increased flexibility for repayments, you have the choice of making weekly, fortnightly, monthly repayments, or even additional, lump sum or larger payments without penalty - even when your rate is fixed. This product also enables you to have a break from your repayments when you get ahead of your repayment schedule, which is ideal if you decide to take a career break or go on maternity leave.
The Home Loan Plus allows borrowers to save on interest with an optional mortgage offset account that provides a 100% interest offset benefit.
The Mortgage Repayment Insurance provides you with the option to protect you and your family in the event that you can no longer meet your repayments due to injury or illness.
Line of Credit
The Line of Credit enables you to take out a loan against equity in your property. Similar to a credit card, you’ll have a predetermined limit and you’ll pay interest on the amount that you withdraw. This gives you the liberty to enjoy life- renovate your home, take an overseas trip or pay for your children’s tuition fees- up to your predetermined limit, without having to apply for an additional loan each time you need to borrow.
With the choice of up to 9 Line of Credit Access Accounts, you can divide your limit into distinct portions that can be used for different reasons to suit your lifestyle needs.
With obligation-free advice from Home Lending Consultants, you can enjoy an approved credit limit up to 85% of property valuation with a competitive variable rate, payable on the amount drawn.
The Line of Credit product is structured with flexible repayment terms so you can repay as much and as often as you like, to suit your cash flow.
The Freedom Package allows you to enjoy the benefits of discounted home loan rates as well as savings on specific home loans. To qualify for this package, you need to organise a new Home Loan Plus or Line of Credit for $150 000 or more. You will be required to pay an annual fee, however this is likely to be offset by the savings you will make.
Along with the Freedom Package savings, you can enjoy all the standard benefits of Auswide’s Home Loan Plus or Line of Credit.
With discounted loan rates on your home loan of $150 000 or more, no loan establishment fees, and no monthly account fee on Home Loan Plus, Line of Credit, Mortgage Offset, Everyday Access or Visa Debit Accounts, the Auswide Freedom Package is a great option for homeowners.
Mortgage Offset Account
You can pay off your home loan sooner and optimise your interest cost savings with the Mortgage Offset Account. Every dollar in the account will be offset against the linked home loan, which will save you an equivalent rate of interest.
Unlike many lenders, Auswide’s 100% offset feature is available on variable and fixed rate home loans. With no establishment fee, a fixed low account fee, no minimum ongoing balance, and unlimited access to Auswide’s online service centre, the Mortgage Offset Account is a valuable product that can complement your home loan and help you fulfil your financial goals.
Protected by the Australian deposit guarantee, up to $250 000 of deposits in ‘protected accounts’ are covered under the Financial Claims Scheme which gives you extra security.
Pros and cons of Auswide home loans
With inclusive features and competitive variable and fixed rates, Auswide Bank provides affordable home loan packages to Australians.
- Competitive variable or fixed interest rates: This offers you cost savings on your mortgage repayments and flexibility to manage your home loan to suit your lifestyle.
- The option of Mortgage Repayment Insurance: This protects you and your family in the event that you are unable to make your repayments due to injury or illness.
- Internet, mobile and phone banking convenience: This accessibility enables you to check your loan balance, manage your accounts or communicate with Auswide Bank digitally.
- Exceptional customer support: With a direct line to an experienced Home Lending Consultant, you will have ongoing guidance throughout your Auswide journey.
- No monthly account fee: Auswide does not charge ongoing fees for the Home Loan Plus, Line of Credit, Mortgage Offset, Everyday Access or Visa Debit Accounts.
- Mandatory fees: Auswide charges mandatory fees for certain loans, such as the establishment fee of $600 (includes Valuation Fee up to $300) and the loan increase fee of $300. However, these charges are relatively inexpensive compared to what other lenders charge.
How to apply for Auswide Bank home loans
Home Loan Plus or Line of Credit Application
- Complete the interactive PDF
- Submit your application: Print the Home Loan Application form, sign and return to Auswide Bank
- An Auswide representative will assess your application and contact you within the next business day. The Loans Consultant will advise you exactly what is required to proceed with your application.
- After receiving the required documentation and once your application has been approved, you will receive a written offer outlining the terms and conditions of the proposed loan.
Freedom Package Application
- To apply for the Freedom Package, you can enquire online.
- Alternatively, you can contact an Auswide Bank consultant in your area that will assist you with your application needs.
Mortgage Offset Account
To apply for the Mortgage Offset account, you can open a new Auswide Bank account for personal use, and close your existing account with another lender.
How to open a new Auswide Bank account for personal use
- Complete and sign the individual Client form for each Signatory or Authority to Access. Please note that this form is not required if you are an existing Signatory/Authority to Access on an existing Auswide Bank account).
- Provide evidence of the identity of each Signatory/Authority to Access. Identification will not be required if you are a Signatory/Authority to Access on an existing account, and have already provided identification. If you’re sending your application via mail and you are unable to visit an Auswide branch, you will need to lodge your application at your closest Australia Post. An Australia Post Identity Verification Form, along with your identification documents will be detailed on this form.
- Complete the Account Application form and have it signed by each Signatory or Authority to Access and return with your payment order for the minimum opening balance or a completed and signed Direct Debit Request (DDR) form.
- Once completed, return the forms to your closest Auswide Bank branch; or post them to Auswide Bank.
How to close my existing account with another lender
Generally, you would contact the lender directly to request the closing of your account. However, Auswide can help you with this procedure.
- Complete and sign an Authority to Close Account form
- Once completed, return the form to your closest Auswide Bank branch, or post to Auswide Bank.
- Once Auswide has received the form, they will deliver the form to the lender on your behalf.
Documents required for a home loan or line of credit application
If you’re applying for an Auswide Bank home loan or line of credit application, you’ll need to provide specific documentation that will help Auswide assess your financial needs. By completing the Auswide home loan application, you’ll be on your way to securing your dream home.
- Purpose of the loan
- Amount of the loan
- Details of the property you are offering as security for the loan
- Loan interest and repayment
- Full names, addresses and contact details of all applicants
- Employment details
- Solicitor and account details
- Personal income
- Household living expenses
- Assets and liabilities
- Related loan accounts
- Complete Identity Verification Form and provision of acceptable ID, to be arranged at a Wide Bay Australia branch.
- Provision of original and certified ID (1 primary + 2 secondary) from the below list:
Primary photo ID:
- driver’s licence (current)
- driver’s learner permit (current)
- passport (not expired more than 2 years)
- proof of age card or NSW photo card
- Credit card
- Utility bill
- Recent rates notice
- Centrelink card
- Medicare card
- Tax assessment notice (last financial year)
- Current bank statement
Auswide will also require applicants to provide consent to complete a credit check with a recognised reporting agency to facilitate the application process.
As Australia’s “newest bank”, Auswide is striving to provide Australians with localised financial services that are catered specifically to their needs. With competitive home loans with inclusive features, fixed and variable rates and professional customer service, Auswide offers valuable and competitive home loan packages within the domestic market.