AWA Alliance Bank provides more services and home loan products to their valued members.
AWA Alliance Bank offers an array of home loan products while still offering personalised service.
AWA Credit Union rebrand
AWA Credit Union (Australia Wide Alumino & Aluminum Credit Union) have rebranded to AWA Alliance Bank after they formed an alliance with Bendigo/Adelaide Bank Limited.
Who is AWA Alliance Bank?
AWA began its history as the Point Henry Credit co-operative Ltd. in 1969 where it provided financial services for Alcoa employees. By 1990 it began offering those same services and products to employees of Portland Aluminum, changing its name in 2002 to better reflect its growing member base.
Other mergers afterwards have helped it to grow to a member owned financial institution managing over $220 million. This has been accomplished by offering a variety of banking products including home loans.
In 2015 another name change occurred after an alliance was formed between the credit union and Bendigo/Adelaide Bank Limited and another three financial institutions to help service their over 4,000 members.
Home loans provided by AWA Alliance Bank
Standard Variable Rate Home Loan
For a loan period of up to 30 years you may borrow up to 95% of the loan to value ratio (LVR) for the purchase of a home. You have the option of making weekly, fortnightly or monthly repayments as well as extra repayments when possible.
There are no fees associated with an early repayment and you can withdraw those funds using a free withdraw facility. AWA charges no monthly fees and will allow for repayments to be made straight from your salary or bank account.
Interest-only Home Loan
With an interest only home loan you can make interest only repayments for up to five years before you are obligated to begin making principal payments. With this option you are allowed to borrow up to 90% LVR and pay off the balance of the loan for a period of up to 30 years.
Extra repayments are also allowed.
Line of Credit Home Loan
A line of credit home loan that acts much like an overdraft, where withdrawals are made when you need them using your MasterCard. Repayments made during this time will be applied to your balance, allowing you to access them again.
The AWA Line of Credit is available for ten years, at which time it will revert to a standard variable rate home loan for the remainder of the terms. There is no monthly fee for this type of home loan, but your total income will be used to reduce the balance. You use the MasterCard for all of your purchases, paying for them only when the MasterCard payment is due.
Pros and cons of an AWA Alliance Bank home loan
AWA Alliance Bank provides home loans to meet different circumstances. These options include:
Pros
- Low deposit. With 5% of the home value down, you could qualify for the standard variable home loan.
- Interest-only option. Making lower monthly repayments for the first five years can give you the financial freedom you need to fix and furnish your home to suit your style.
- No penalty for early repayment. This could save a borrower a lot of money if it becomes possible to complete the loan repayments before the terms end.
- No fees. You won’t be responsible for any monthly account keeping fees.
Cons
- No offset account. AWA doesn't offer offset accounts on its home loans.
- Membership. As a member owned banking institution, only those who have joined may take advantage of one of these home loans. Membership is exclusive to the employees and families of Alcoa, and Portland Aluminium and their subsidiaries.
How to apply for an AWA Alliance Bank home loan
As previously mentioned, members of AWA are eligible for any of these products. You can apply now for the loan and if approved become a member before the loan is established. Applying for membership can be done online and will require that you pay $10 for your share. This cost will be directly deducted from your account.
- Apply online. If you are a permanent Australian resident and over 18 years of age you can apply online on the AWA website.
- Approval. If approved, your loan documentation will be sent to you to complete and sign before returning it to AWA.
- Income. AWA requires applicants to have a steady income and stable job.
You can make deciding on which home loan to choose easier by using the above guides to compare the features, options and benefits. Consider what your needs are and choose the home loan that can best meet them.
Documents needed to apply for an AWA Alliance Bank home loan
Personal information
One of the very first things you are going to be asked is to verify your identity. This is to protect you and the credit union from any fraudulent activity. This can be done using the following documentation:
- Driver’s licence. A valid driver’s licence is considered an acceptable form of photo id. If you don’t drive you could also use an Australian non-driver’s id so long as it contains your photograph.
- Australian passport. As with the licence, this document should be current if using it as a means of verifying your identity.
Property information
With a home loan, the property is used to provide security to the lender. They will want some documentation to ensure that the property exchange is being conducted correctly as protection for the credit union. These documents will include:
- Contract of sale. The pertinent details of the sale of the property will be outlined here, including a description of the property and the price that has been agreed upon for the sale.
- Title certificate. This is a document providing proof that the seller is legally allowed to sell the property.
- Transfer of land. This provides proof that the property has been transferred into your land.
Financial information
AWA Alliance Bank is going to want to make sure that you are going to be financially capable of making timely repayments. To do this, they will ask for the following information regarding your financial status:
- How much you earn. Your income is very important, and AWA is going to want details of your employment and the amount of money you earn. You can include non-employment income as well, such as rental payments.
- What you own. Your personal assets will have to be listed. Include any property you own, automobiles, investment accounts or property and savings.
- What you owe. The amount of money you are paying monthly for things such as credit card debt, loan repayments and utilities.
