Arab Bank Australia Limited Home Loans: The 2026 Review

Arab Bank Australia Limited, established in 2000, operates as a subsidiary of the globally renowned Arab Bank, which was founded in 1930 in Jerusalem. The bank's establishment in Australia marked the expansion of Arab Bank's international presence, aiming to offer tailored financial solutions to the Australian market. Headquartered in Sydney, New South Wales, Arab Bank Australia has grown to serve key regions, particularly New South Wales and Victoria, with a focus on community banking.

Today, Arab Bank Australia is recognised as an independent entity within the financial sector, providing a range of home loan products. The bank differentiates itself from the Big 4 by offering personalised service and competitive rates, appealing to homeowners and investors. With 11 products and 23 variations, the bank offers both branch and online services, ensuring accessibility and convenience for its customers.

Arab Bank Australia targets a specific market of homeowners and investors who value direct access to banking professionals and competitive loan options. The bank offers up to 95% LVR with Lender's Mortgage Insurance and fixed-rate options for up to five years. Its community-focused approach and personalised service cater to those seeking tailored financial solutions, setting it apart in a competitive landscape.

• Legal Name: Arab Bank Australia Limited
• ABN: 37002950745
• ACN: 002950745
• Established: 2000
• Headquarters: Sydney, New South Wales
• Type: Public Company
• Ownership: Independent

• Website: https://www.arabbank.com.au
• Phone: 1800 64 64 84
• Address: Sydney, NSW

Arab Bank Australia Limited offers a range of home loan products with flexible features and competitive rates, catering to both owner-occupiers and investors. Borrowers benefit from options like fixed interest rates, loan portability, and access to online banking, ensuring tailored financial solutions.

• Fixed Interest Rate: Arab Bank Australia provides fixed interest rates for the first 1 to 5 years, offering stability and predictability in repayments. This feature is beneficial for budgeting, as borrowers can lock in their interest rate and avoid fluctuations.
• Loan Portability: Loan portability allows borrowers to transfer their existing loan to a new property without incurring additional costs. This feature offers flexibility for those looking to move homes while maintaining their current loan terms.
• Online Banking Access: Borrowers can manage their loans through Arab Bank Australia's online banking platform. This feature provides convenience, allowing users to monitor their accounts, make repayments, and access loan details anytime, anywhere.
• Automatic Repayments: Automatic repayments ensure timely payments by deducting instalments directly from the borrower's account. This feature reduces the risk of missed payments and helps maintain a good credit history.
• Loan-to-Value Ratio (LVR): Arab Bank Australia offers loans up to 95% of the property value, with Lender's Mortgage Insurance required for amounts over 80%. This high LVR option enables borrowers to purchase property with a smaller deposit.
• Redraw Facility: The redraw facility allows borrowers to access extra repayments made on their loan. This feature provides financial flexibility, enabling access to funds if needed for emergencies or other expenses.
• Offset Account: An offset account can be linked to the loan, reducing the interest payable by offsetting the loan balance with the account balance. This feature helps in saving interest costs over the loan term.
• Flexible Repayment Options: Borrowers can choose from weekly, fortnightly, or monthly repayments, allowing them to align payments with their income schedule. This flexibility aids in effective financial management.
• Principal and Interest Repayment: Arab Bank Australia offers principal and interest repayment options, ensuring that borrowers gradually pay down their loan balance while covering interest costs. This approach helps in building equity over time.
• Interest-Only Periods: Select products offer interest-only repayment periods, providing temporary relief on cash flow by reducing monthly payments. This is particularly beneficial for investors managing multiple properties.

Arab Bank Australia Limited provides a transparent fee structure for its home loan products, ensuring borrowers understand the costs involved in their mortgage journey.

• Application Fee: $600 - Charged when applying for a home loan. Some products may offer a $0 fee for first home buyers.
• Tenanted Security Report Fee: $100 per hour - Payable if the bank needs to inspect the property to confirm occupancy status.
• Title Change Fee: $100 - Charged when the customer requests a change to the title of the security property.
• Deed Production Fee: $60 - Applicable when the bank produces a document for a government registry.
• Discharge of Security Fee: $250 - Payable upon discharge of a security. Does not include solicitor or registry fees.
• Direct Debit Dishonour Fee: $35 - Charged when a direct debit to the loan account is dishonoured.
• Additional Security Consent Fee: $150 - Applicable when requesting the bank's consent for a security interest over the property.
• Rollover Fee: $300 - Charged if a fixed rate is rolled over to another fixed rate period.
• Monthly Service Fee: $8 (Monthly) - Monthly fee for account maintenance.
• Redraw Fee (Over the Counter): $55 - Charged for over-the-counter redraw transactions.

Arab Bank Australia Limited offers home loans to a diverse range of borrowers, focusing on personalised service and competitive rates. They cater to both new and existing customers across New South Wales and Victoria, with flexible loan options available.

• Applicants must be at least 18 years old.
• Applicants must be Australian citizens or permanent residents.
• Applicants must demonstrate a stable income and ability to repay the loan.
• A good credit history is required, with no significant defaults.
• Loan-to-Value Ratio (LVR) can be up to 95% with Lender's Mortgage Insurance (LMI).
• For LVRs above 80%, LMI is mandatory.
• The minimum deposit required is typically 5%, though this may vary by product.
• Applicants may need to consult a Relationship Manager for specific rate inquiries on higher LVRs.

• LVR above 80% requires Lender's Mortgage Insurance, impacting overall costs.
• Special discounts are available for new customers and direct applicants, such as a 3.14% discount on variable rates.
• Consultation with a Relationship Manager is recommended for tailored solutions, especially for higher LVRs.