Australian Unity Bank Home Loans: The 2026 Review

Australian Unity Bank, established in 2018, is a customer-owned financial institution based in Melbourne, Victoria. The bank's origins trace back to the friendly societies movement, with a significant milestone being its merger with Big Sky Credit Union in 2012. This merger laid the groundwork for its transformation into Australian Unity Bank, aligning with its mission to provide community-focused banking solutions.

Today, Australian Unity Bank operates independently from the Big 4 banks, emphasising a customer-owned model that prioritises community support and sustainable banking practices. With a focus on delivering competitive rates and personalised service, the bank differentiates itself by not being driven by profit motives. Its offerings include a 100% offset account on variable loans and the flexibility of unlimited additional repayments, although it does not cater to high-LVR or bad credit loans.

The bank primarily serves Australian home loan borrowers, focusing on those seeking community-oriented and sustainable banking options. With its headquarters in Melbourne, Australian Unity Bank leverages both branch and online delivery models to reach its customers. Its commitment to security is evident through features like VoiceID and two-factor authentication, ensuring a secure banking experience.

• Legal Name: Australian Unity Bank Limited
• ABN: 30087652079
• ACN: 087652079
• Established: 2018
• Headquarters: Melbourne, Victoria
• Type: Customer-Owned Bank
• Ownership: Independent

• Website: https://www.australianunity.com.au
• Phone: 1800 998 805
• Email: [email protected]
• Address: Melbourne, Victoria

Australian Unity Bank offers a range of features designed to provide flexibility and convenience for home loan borrowers. With a focus on customer ownership and community support, the bank provides competitive rates and secure banking experiences.

• 100% Offset Account: Available on variable rate loans, the 100% offset account allows borrowers to reduce interest payments by offsetting their loan balance with savings. This feature provides significant interest savings over the life of the loan.
• Redraw Facility: Borrowers with variable loans can access a redraw facility through Internet Banking, with a minimum redraw amount of $500. This feature offers flexibility by allowing borrowers to access extra repayments if needed.
• Unlimited Additional Repayments: On variable rate loans, borrowers can make unlimited additional repayments, enhancing their ability to pay off the loan faster. Fixed rate loans allow up to $10,000 in additional payments annually, offering some flexibility while maintaining fixed interest benefits.
• Mobile and Online Banking: Manage your finances on the go with Australian Unity Bank’s mobile app and Internet Banking. This feature provides convenience by allowing borrowers to view transactions, transfer funds, and manage accounts anywhere, anytime.
• Loan Splitting: Borrowers can divide their loan into up to four accounts with different types, repayment structures, or interest rates. This flexibility allows for tailored financial strategies to suit individual needs.
• Security Features: Enhanced security with VoiceID and two-factor authentication ensures a secure banking experience. These measures protect personal and financial information, providing peace of mind for borrowers.
• Community Focus: As a customer-owned bank, Australian Unity prioritises community support and sustainable banking solutions. This focus differentiates it from profit-driven banks, aligning with borrowers who value ethical banking practices.

Australian Unity Bank maintains a transparent fee structure, with specific charges for various services associated with home loans. Borrowers should be aware of both upfront and ongoing fees, as well as other potential costs, to fully understand the total cost of borrowing.

• Loan Establishment Fee: $600 - Applies to new, non-package loans. Covers property valuation (up to $1.5M) and loan document preparation.
• Additional Valuation Fee: $349 - Charged for any extra valuations required, covering properties valued up to $1.5M.
• Title/Documentation Production Fee: $249 - Payable each time a title production request is made. Statutory government fees apply.
• Construction Loan Fee: $750 - Includes property valuations at up to 5 stages and 5 progress payments during construction.
• Annual Package Fee: $399 (Annual) - Charged on all package loans at settlement and annually thereafter.
• Discharge Fee: $375 - Payable when releasing property security. Covers documentation preparation for mortgage discharge.
• Break Cost Fee: Variable - Applicable to fixed home loans if the contract is terminated early or additional payments exceed $10,000 annually.
• Loan Restructure Fee: $399 - Charged when changing loan account holders. Additional discharge fees may apply.
• Product Switch Fee: $399 - Covers administrative costs when switching between loan products.
• Staff Assisted Redraw Fee: $50 - Charged for manual redraw requests processed by staff.
• Self-Serve Redraw: $0 - No fee for redraws conducted via Internet or Mobile Banking, with a minimum of $500.

Australian Unity Bank provides home loans to Australian citizens and permanent residents over the age of 18, focusing on community-oriented, customer-owned banking solutions.

• Must be at least 18 years old.
• Must be an Australian citizen or permanent resident residing in Australia.
• Must demonstrate sufficient income and employment stability to meet loan repayments.
• Must have a good credit history; bad credit loans are not offered.
• Loan-to-Value Ratio (LVR) must generally not exceed 80%, with no high-LVR loans available.
• Property must meet bank's valuation and be located within approved areas.

• Lenders Mortgage Insurance (LMI) may be required for loans with an LVR above 80%.
• No high-LVR or bad credit loans are available, limiting options for some borrowers.
• Unlimited additional repayments are allowed on variable loans, offering repayment flexibility.