Arab Bank Australia Limited Home Loans: The 2026 Review

Arab Bank Australia Limited was founded in 1930 by Abdul Hameed Shoman in Jerusalem, marking the beginning of a financial institution that would grow to have a significant presence in the Middle East and beyond. Established as a subsidiary of the Arab Bank Group, the bank has a rich history of supporting community banking and financial services across various regions.

Today, Arab Bank Australia is headquartered in Sydney, New South Wales, and operates as a niche player within the Australian banking sector. It differentiates itself from the larger, more impersonal institutions by focusing on personalised service and community engagement. The bank offers a range of financial products, including home loans, with a total of 11 products and 19 variations available through both branch and online channels.

Targeting individuals in New South Wales and Victoria, Arab Bank Australia positions itself as a community-focused alternative to the Big 4 banks. It provides competitive rates and unique features such as loan portability and flexible repayment options. The bank is particularly appealing to those seeking personalised banking experiences, offering a 3.04% discount on the Basics Home Loan and margin discounts on variable rates after fixed periods.

• Legal Name: Arab Bank Australia Limited
• ABN: 37002950745
• ACN: 002950745
• Established: 1930
• Headquarters: Sydney, New South Wales
• Type: Limited
• Ownership: Independent

• Website: https://www.arabbank.com.au
• Phone: 1800 64 64 84
• Address: Level 9, 200 George Street, Sydney, NSW

Arab Bank Australia Limited offers a range of home loan products with flexible repayment options, competitive rates, and unique features like loan portability, catering to both owner-occupiers and investors.

• Fixed Interest Rate: Arab Bank Australia provides a fixed interest rate for the first 1 to 5 years, offering borrowers stability and predictability in their repayments. This feature helps manage budgeting by protecting against interest rate fluctuations during the fixed period.
• Flexible Repayment Options: Borrowers can choose from weekly, fortnightly, or monthly repayment schedules, allowing them to align payments with their income cycles. This flexibility aids in better financial management and planning.
• Automatic Repayments: The automatic repayment feature ensures timely payments by linking directly to an existing Arab Bank Australia transaction account. This convenience helps avoid missed payments and potential late fees.
• Loan Portability: Loan portability allows borrowers to transfer their existing loan to a new property without refinancing. This feature provides convenience and cost savings for those looking to move without changing their loan terms.
• Online Banking Access: Arab Bank Australia's online banking platform offers borrowers the ability to monitor their loan accounts, make repayments, and manage their finances digitally. This access enhances convenience and control over loan management.
• Principal and Interest Repayment: The principal and interest repayment structure helps borrowers gradually reduce their loan balance over time. This approach builds equity in the property while ensuring that interest costs are manageable.
• Loan-to-Value Ratio (LVR): The bank offers loans up to 95% of the property's value, with Lender's Mortgage Insurance required for amounts over 80%. This high LVR option allows borrowers to enter the property market with a smaller deposit.
• Redraw Facility: Available on select products, the redraw facility allows borrowers to access extra repayments made on their loan. This feature provides financial flexibility by enabling access to funds when needed.
• Offset Account: A 100% offset account is available, which reduces the interest payable on the loan by offsetting the loan balance with the account balance. This feature can significantly reduce interest costs over the life of the loan.
• Rate Discounts: Arab Bank Australia offers rate discounts, such as a 3.04% discount on the Basics Home Loan, providing cost savings over the life of the loan. This discount enhances affordability and competitiveness.

Arab Bank Australia Limited provides a detailed fee structure for its home loan products, ensuring transparency for borrowers. Fees vary across products, with specific charges applicable depending on the borrower's circumstances and loan type.

• Application Fee: $600 - Charged for processing the loan application. Some products may offer a $0 fee for first home buyers.
• Tenanted Security Report Fee: $100 per hour - Applicable when the bank inspects a property to confirm occupancy status if not disclosed by the customer.
• Title Change Fee: $100 - Payable if the customer requests a title change due to legal reasons. Excludes solicitor and registry costs.
• Deed Production Fee: $60 - Charged when the bank produces a document for a government registry, excluding solicitor and registry fees.
• Discharge of Security Fee: $250 - Payable upon discharge of a security. External costs may be covered by this fee, excluding solicitor and registry charges.
• Direct Debit Dishonour Fee: $35 - Charged when a direct debit to the loan account is dishonoured.
• Additional Security Consent Fee: $150 - Applicable when the bank is asked to consent to a security interest on the property, regardless of the decision.
• Rollover Fee: $300 - Charged at the end of a fixed rate period if the customer opts for another fixed rate rather than a variable rate.
• Monthly Service Fee: $8 (Monthly) - Recurring fee for maintaining the loan account.
• Redraw Fee (Over the Counter): $55 - Charged for over-the-counter redraws from the loan account.

Arab Bank Australia Limited provides home loans to individuals aged 18 and over, offering a range of products with flexible features and competitive rates.

• Must be at least 18 years old.
• Must be an Australian citizen or permanent resident.
• Demonstrable ability to repay the loan based on income and employment stability.
• Good credit history, with a satisfactory credit score as assessed by the bank.
• Maximum Loan-to-Value Ratio (LVR) of 95% with Lender's Mortgage Insurance (LMI).
• Different rates apply for owner-occupiers and investors.
• Loan portability is available, allowing transfer to a new property without refinancing.

• LMI is required for loans with an LVR above 80%.
• Some products may allow a 5% deposit with a guarantor.
• Special discounts available for new customers, such as a 3.04% discount on the Basics Home Loan.