Bank Australia was first established in 1957 as CSIRO Co-operative Credit Society and became Australia’s first ever customer-owned bank in 2011 when it joined 71 other credit unions and co-operatives.

In its current guise, Bank Australia claims to be the bank for the people who want to live in a ‘fair’ and ‘just’ society. Heavily involved in social and environmental issues, Bank Australia has invested more than $1 billion into projects and organisations aligning with its values.

The bank has what it terms a ‘clean money promise’ not to use its customers' money for harm. This includes not granting loans to the following industries:

  • Fossil Fuels

  • Live exports

  • Gambling

  • Intensive animal farming

  • Weapons

  • Tobacco

The lender has more than 350 staff employed across Australia and more than 125,000 customers. As well as home loans, Bank Australia offers personal loans, car loans, savings accounts, term deposits, credit cards, insurance and more.

Bank Australia home loans

Bank Australia offers three main home loan products:

  • Basic Home Loan

  • Premium Home Loan Package

  • Clean Energy Home Loan

True to its ethos, all eligible home loan customers can apply to pause their repayments for a three-month break for making sustainable upgrades to their homes or on becoming a parent.

Here is a rundown of Bank Australia’s current owner occupier rates and product highlights:

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
5.34% p.a.
6.27% p.a.
$2,789
Principal & Interest
Fixed
$350
$0
90%
5.44% p.a.
6.30% p.a.
$2,820
Principal & Interest
Fixed
$350
$0
90%
5.64% p.a.
6.36% p.a.
$2,883
Principal & Interest
Fixed
$350
$0
70%
5.64% p.a.
6.25% p.a.
$2,883
Principal & Interest
Fixed
$350
$0
70%
5.64% p.a.
6.32% p.a.
$2,883
Principal & Interest
Fixed
$350
$0
70%
5.64% p.a.
6.25% p.a.
$2,883
Principal & Interest
Fixed
$350
$0
70%
5.64% p.a.
6.36% p.a.
$2,883
Principal & Interest
Fixed
$350
$0
70%
5.64% p.a.
6.32% p.a.
$2,883
Principal & Interest
Fixed
$350
$0
70%
5.74% p.a.
6.50% p.a.
$2,915
Principal & Interest
Fixed
$350
$0
80%
5.74% p.a.
6.40% p.a.
$2,915
Principal & Interest
Fixed
$350
$0
80%
Important Information and Comparison Rate Warning

Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Basic Home Loan

“Our Basic Home Loan offers customers a straightforward option with competitive rates and low fees,” a Bank Australia spokesperson said.

The product comes with an establishment fee but no annual or monthly fees. Notable features include flexible repayments, redraw facility, and the ability to lock in a fixed rate.

Its ‘parental pause’ feature is effectively a mortgage holiday that allows new parents to take a break on their home loan repayments for three months or halve them for six.

The offer also extends to those installing or making environmentally sustainable upgrades to their homes.

Premium Home Loan Package

The fully featured, 100% offset Premium Home Loan Package bundles in a variety of features for a set annual fee ($350 as at October 2024).

“Our Premium Home Loan Package also gives customers access to a range of features like options to pause repayments when becoming a parent or making sustainable upgrades,” a Bank Australia spokesperson said.

Its notable features include, but are not limited to:

  • 100% offset account

  • Flexible repayments

  • Parental pause

  • Redraw facility

  • No annual fee on a Premium Rewards Visa card (valued at $189, as at October 2024)

Clean Energy Home Loan

Borrowers can get reduced interest rates for going green with Bank Australia’s Clean Energy Home Loan. For an annual fee, the features are similar to its packaged home loans.

“Our Clean Energy Home Loan is a discounted home loan for customers who are buying or building 7+ star rated home,” a Bank Australia spokesperson said.

If you’re adding green features to your home like solar panels, window glazing and more, you could qualify for a five-year reduced variable rate. The rate also applies if you are building a 7+ energy star rated home.

Banking aligned with your values

Bank Australia believes that your choice of bank could help change the world, and that together with its customers, it’s creating a world where “people and the planet thrive”.

“Bank Australia is the bank for people who care about people and the planet and want to align their banking with their values, but also don’t want to compromise on products and services,” a Bank Australia spokesperson told Savings.com.au.

“As a customer-owned bank, we put our customers at the centre of everything we do.

“We listen to the issues that are most important to them, like climate change and conservation, and use their money to have a positive impact.”

The bank claims that it can “do things differently to your typical bank” thanks to its ‘B Corporation’ credentials.

B Corp certification essentially means a business meets high standards of accountability and transparency, offering notable employee benefits and charitable giving. As part of its B Corp credentials, Bank Australia does not extend bonuses to its executives.

“Our responsible banking policy means we will never invest in harmful industries like fossil fuels or live animal export,” Bank Australia’s spokesperson said.

“Instead, we seek to invest in affordable and sustainable housing and community renewable energy.”

Using money as a force for good

The customer-owned bank has invested $1.08 in impact finance assets, including loans to businesses and organisations that “benefit people and the planet”.

Bank Australia was the first Australian bank to join the Global Alliance for Banking on Values (GABV).

“We believe that a truly responsible bank can make society better by empowering people and organisations to use their money as a force for good,” Bank Australia’s spokesperson said.

“We also don’t give our executives bonuses, are carbon neutral, and own a conservation reserve together with our customers.”

Each year, Bank Australia releases an Impact Report disclosing what share of its liquidity portfolio is in green, social, and sustainability bonds as well as the types of projects these investments finance, such has light rail and transport, wind and solar farms, and low-carbon buildings.

How to apply for a Bank Australia home loan

Eligibility criteria

Bank Australia has eligibility criteria for its home loans. Generally, you need to:

  • be above 18 years old,

  • be an permanent resident or citizen of Australia or New Zealand

  • be employed or earning a regular income

  • have a good credit history for the past five years

If you’re eligible for a Bank Australia mortgage, you can start your home loan application online by visiting their website.

Documents needed

Bank Australia will require documentation to provide proof of some of the things on your application. You can provide it as you go, or later on in the process.

You will need to submit:

  • Personal identification documents - drivers' license, passport, or Medicare card

  • Financial situation and employment - payslips, notice of tax assessment, or bank statements

  • Evidence of your cost of living, savings, and your deposit, including bank statements

    Image by Dieter Pelz on Unsplash

    Original article by Rachel Horan in February 2022. Updated by Denise Raward on 18 October 2024.



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