Your guide to home loan products available form Regional Australia Bank.
With over 70,000 members, Regional Australia Bank (formerly Community Mutual Group) is Australia’s largest inland credit union. It was formed by the merger of three separate credit unions in New South Wales.
Awards that Regional Australia Bank has earned
- Socially Responsible Mutual of the Year, 2013. Regional Australia Bank was recognised by Money Magazine for its commitment to serving the community.
Who is Regional Australia Bank?
Regional Australia Bank provides local banking services to residents throughout the Hunter, Orana, and New England regions of New South Wales. It offers a variety of loans that are designed to provide customers with flexible options that meet their needs.
Several loan options are available for homebuyers to ensure a range of prospective borrowers can find what they’re looking for. From products for first-time buyers to offset loans and offerings for investors, Regional Australia Bank’s range of loans includes plenty of choice.
Home loans offered by Regional Australia Bank
Partnership advantage home loan
The Partnership Advantage Home Loan is the perfect option for those who are looking for a stress-free mortgage. It can save you both time and money, as well as help you manage your finances more efficiently. This loan can be obtained using either fixed or variable rates and is also available for some interest-only home loans.
There is an annual maintenance fee associated with this loan option, but it also comes with a number of special offers and discounts. If you obtain this loan, you will not be charged a home loan approval fee, an initial home valuation fee, or a monthly account-keeping fee. You will also receive a reduction in your interest rates and a discount off your Allianz Insurance policy.
Mortgage offset home loan
Regional Australia Bank's Mortgage Offset Home Loan option is great for those who want to use their savings to pay off the mortgage faster. It allows you to link up to eight different savings accounts to your mortgage. This ensures that your savings are used to bring down your interest rates and help you pay off your mortgage sooner.
Homes that are owner occupied are also eligible for this type of loan option. The loan comes with a variable rate and you can determine what type of payment instalment you want to use: weekly, fortnightly or monthly.
Redi-Draw home loan
The Redi-Draw Home Loan is great for those who want to pay off their loan sooner without any increased risk. It lets you make extra payments to decrease the overall interest amount owed on your loan. In addition, you can request these overpayments back, with no added charge, if you ever face an unexpected emergency.
Approval for this type of loan can be received in less than 48 hours from the time you apply. It comes with variable rates and can be used for residential homes, investment real estate or owner-occupied homes.
Fixed rate home loan
The Steady Rate Home Loan is a flexible home loan option that allows you to switch between fixed and variable rates. Initially, this loan includes a fixed rate for a period of set period, and then you can choose to maintain the fixed rate option or convert the loan to a variable rate option.
You have the freedom of breaking your loan down and setting different rates and time periods for different portions of your loan.
First home buyer home loan
The First Home Buyer Home Loan provides a discounted variable rate for an introductory period. It also offers a discount off the interest rates of a Your Choice Visa Credit Card. This card is offered with no annual fee for people who obtain this loan.
To make homeownership more affordable for first-time home buyers, there are no monthly account-keeping, transaction or service fees attached to this loan.
Sustainable home loan
Regional Australia Bank's Sustainable Home Loan is for people who are looking for an energy-efficient home. The loan offers a reduction off the standard variable rate. To qualify for this loan, you must either purchase or build a home that meets the standards set out by the House Energy Rate Scheme. The home must be at a six-star level or higher to qualify.
Homebuyers must have their home inspected by a qualified technician who can properly assess the home. This loan is only available with variable interest rates, and home buyers who are interested in this type of loan should speak to a Regional Australia Bank representative for full details.
Pros and cons of Regional Australia Bank home loans
- High LVRs available. Regional Australia Bank can lend up to 95% of the property value, although borrowing over 80% will come with lender’s mortgage insurance premiums.
- Flexible instalments. With Regional Australia bank you can determine how often you want to make payments on your home loan. You can select to make weekly, fortnightly or monthly payments.
- Receive a Your Choice Visa Credit Card. This credit card is available to anyone who receives a home loan through Regional Australia Bank. There are no, or minimal, annual fees attached to the card.
- Many loans come with a redraw option. Some of Regional Australia Banks home loans allow you to make additional payments on your loan to help pay it off at a faster rate. You are then able to redraw these additional payments if you ever face an emergency situation.
- Only in New South Wales. This credit union is not a nationwide financial institution and branches are only located in New South Wales.
How to apply for a Regional Australia Bank home loan
As with any financial institution, applying for a home loan with Regional Australia Bank does take some time. The credit union must first verify your creditworthiness and then discuss the various options with you. Below is a brief look at the steps you can expect to take when applying for a loan with Regional Australia Bank:
- Online application. The first step in applying for a home loan with Regional Australia Bank is to complete the online application. This will help to determine if you are eligible for a home loan with Regional Australia Bank and, if so, for how much. This is, however, just the first step. You will also find a loan repayment calculator online to help you determine how much you can afford for a home.
- Face-to-face meeting. After you submit an online application, a representative from Regional Australia Bank will contact you to discuss your home loan options. They are likely to request a face-to-face meeting with you to gather more information about your personal finances. Regional Australia Bank will use this additional information to help make a final decision about your loan.
Documents needed to apply for a Regional Australia Bank home loan
When you apply for a loan with Regional Australia Bank, you will need to provide several pieces of personal information. Here is a look at some of the items Regional Australia Bank will need to see:
- Australian Tax File Number (TFN). You will need to provide Regional Australia Bank with your personal TFN. If you do not have a number, you will need to contact the Australian Taxation Office prior to applying for a loan.
- Proof of identity. You will also need to provide Regional Australia Bank with proof of your identity before your home loan can be finalised. Regional Australia Bank uses the government’s 100-point identification process that requires you to provide enough identification points to equal 100 or more. Your passport, birth certificate, or proof of citizenship papers are worth 70 points each, while your driver’s licence is worth 40 points and credit cards are worth 25 points.
You will also need to provide Regional Australia Bank with several documents about the property you intend to purchase. Some of these items will be collected prior to your loan being finalised and the other forms must be submitted when closing the loan deal:
- Valuation of property. Before the loan can be finalised, you will need to have it assessed by a professional home evaluator. The valuation of property paperwork must be submitted to Regional Australia Bank prior to closing on the loan. The assessment is offered free of charge when obtained in conjunction with certain loans from Regional Australia Bank.
- Title on Property. Regional Australia Bank will require you to provide them with a copy of the current title of the property you intend to purchase. This is done to ensure that the party you are purchasing the property from is the actual owner and has legal authority to sell the property.
While Regional Australia Bank will prequalify you for a home loan based on the financial figures you provide them with, they will require proof of your financing before the loan can be finalised. Here is a look at the paperwork you will be expected to provide Regional Australia Bank with:
- Proof of income. You will need to provide with proof of your current income and maybe even copies of your previous tax reports. This documentation must match the total figures you provided when applying for the loan.
- Proof of all additional assets. You will also need to provide any documentation in relation to any larger assets you own. The value of these assets will be used to determine how large a home loan you can obtain.
- Documentation of substantial expenses. If you have any large outstanding debt,Regional Australia Bank may ask for additional information about these expenses. They will check that you make your payments on time and what amount you still owe.
Regional Australia Bank’s home loan range may very well offer the right deal for you, but make sure to do your research and compare other loans on the market before you sign on the dotted line.