UPDATED JUN 22, 2026

Bank Australia Home Loans: The 2026 Review

Ethical banking with competitive rates, Bank Australia supports sustainable housing. Watch out for potential hidden fees. Ready to make a difference with your home loan?

Bheja Verdict

Very Good

4.1/5
✓
Highly competitive rates across products
✓
Wide range of loan options
Check Eligibility

Bank Australia Home Loans At a Glance

🏷️Best Rate Available

5.88%

Variable • Owner Occupied

💳Application Fee

$0

Fee-free options available

📅Monthly Fee

$0

Fee-free options available

Loan Range:$10K - $100.0M
LVR:Up to 96%
Products:136 variations
Offset Account:Available

Current Bank Australia Home Loan Rates

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Average Rate
6.17%
Best Rate
5.88%
Monthly Payment
$2,959
Advanced
  • Bank Australia

    Clean Energy Home Loan

    Bank Australia

    Min 10% DepositOffsetRedraw
    5.88%
    Interest Rate
    Variable
    6.21%
    Comparison Rate*
    $2,959
    per month
    Principal And Interest
    Visit lender’s site
    Fees:
    Ongoing/year
    $199
    Discharge
    $275    + other fees may apply
  • Bank Australia

    Offset Home Loan

    Bank Australia

    Min 20% DepositOffsetRedraw
    6.05%
    Interest Rate
    Variable
    6.24%
    Comparison Rate*
    $3,014
    per month
    Principal And Interest
    Visit lender’s site
    Fees:
    Ongoing/year
    $189
    Discharge
    $275    + other fees may apply
  • Bank Australia

    Basic Home Loan

    Bank Australia

    20%-30% DepositRedraw
    6.14%
    Interest Rate
    Variable
    6.14%
    Comparison Rate*
    $3,043
    per month
    Principal And Interest
    Visit lender’s site
    Fees:
    Discharge
    $275    + other fees may apply
  • Bank Australia

    Offset Home Loan

    Bank Australia

    20%-30% DepositOffsetRedraw
    6.18%
    Interest Rate
    Variable
    6.37%
    Comparison Rate*
    $3,056
    per month
    Principal And Interest
    Visit lender’s site
    Fees:
    Ongoing/year
    $189
    Discharge
    $275    + other fees may apply
  • Bank Australia

    Basic Home Loan

    Bank Australia

    10%-20% DepositRedraw
    6.39%
    Interest Rate
    Variable
    6.39%
    Comparison Rate*
    $3,124
    per month
    Principal And Interest
    Visit lender’s site
    Fees:
    Discharge
    $275    + other fees may apply
  • Bank Australia

    Offset Home Loan

    Bank Australia

    10%-20% DepositOffsetRedraw
    6.39%
    Interest Rate
    Variable
    6.58%
    Comparison Rate*
    $3,124
    per month
    Principal And Interest
    Visit lender’s site
    Fees:
    Ongoing/year
    $189
    Discharge
    $275    + other fees may apply

* Comparison rate is calculated on a loan amount of $150,000 over 25 years. Rates and fees are subject to change. Terms and conditions apply.

+ Only key fees (application, discharge, ongoing) are displayed - other fees such as redraw, administration, and processing fees may also apply.

Bank Australia Product Statistics

Real-time insights and market analysis

Bank Australia offers 17 home loan products across 136 variations, the average variable rate is 6.49% p.a., the best available rate is 5.88% p.a..

Average Variable Rate

6.49%

33 products

Average Fixed Rate

6.63%

103 products

Best Available Rate

5.88%

Variable • Owner Occupied • P&I

Total Products

17

136 variations

Fee Summary

Application Fee

99% fee-free

$0 - $595

Monthly Fee

1% fee-free

$0

Discharge Fee

$275

Late Payment Fee

$0

Key Features

Across Bank Australia's range: 71 include an offset account, 45 offer redraw, 136 allow extra repayments, 134 support split loans.

Offset Account
52%
Redraw Facility
33%
Extra Repayments
100%
Split Loan
99%

Product Ranges

Bank Australia's interest rates range from 5.88% to 8.10% p.a., maximum LVR from 60% to 96%, loan amounts span $10,000 to $100,000,000.

Interest Rates5.88% — 8.10%
Max LVR60% — 96%
Loan Amount$10K — $100.0M

Disclaimer: The key features displayed highlight what's available across the lender's home loan range. Individual products and variations may differ. Use the product table to search for a loan with the specific features you're looking for.

How Bank Australia Compares

FEATUREBank AustraliaFire Service Credit UnionHume BankAustralian Mutual Bank LTDNewcastle Permanent Building Society
Best Variable Rate
5.88%
5.89%
5.99%
5.64%
5.99%
Best Fixed Rate (3yr)
6.19%
—
6.39%
6.14%
6.39%
Application Fee
$0BEST
$150
$199
$250
$350
Monthly Admin Fee
$0BEST
$0
$0
$0
$0
Offset Account
Redraw Facility
Product Variations
136
5
116
182
109
💡

Bheja Insight: Bank Australia waives application fees, saving borrowers hundreds compared to other community-owned lenders.

About Bank Australia

Company overview and contact information

Bank Australia, established in 1957, is a customer-owned bank that emerged from the CSIRO Co-operative Credit Society. It evolved through mergers of 72 credit unions and co-operative banks, becoming Bank Australia in 2015. As a community-owned entity, it is part of the Global Alliance for Banking on Values and a certified B Corporation, emphasizing ethical banking practices.

Offering 17 home loan products with rates ranging from 5.88% to 8.10%, Bank Australia caters to a diverse range of customers. Their home loans are designed with no establishment or monthly fees, appealing to cost-conscious borrowers. The bank operates both online and through physical branches, providing flexible access to its services.

What sets Bank Australia apart is its commitment to ethical practices and sustainability. The bank does not fund industries harmful to the environment and actively supports sustainable housing initiatives. As an APRA-regulated institution, it maintains a strong reputation for responsible banking, making it a preferred choice for ethically-minded customers.

Company Details

Legal Name: Bank Australia
ABN: 21087651607
Established: 1957
Ownership: Customer-owned

Key Features

Bank Australia offers a range of flexible and sustainable home loan features designed to support borrowers with ethical banking practices and environmentally friendly initiatives.

Mortgage Offset Account

Bank Australia's Mortgage Offset Account allows you to reduce the interest on your home loan by offsetting your account balance against your loan amount, up to $20,000. This feature helps lower your interest payments, providing significant savings over time.

Additional Repayments

You can make additional repayments of up to $30,000 during the fixed rate period, allowing you to pay off your loan faster and reduce interest costs. This feature offers flexibility in managing your loan repayment strategy.

Digital Banking Services

Manage your day-to-day banking needs with ease using Bank Australia's App or Internet Banking. These digital platforms provide convenient access to your accounts, enabling you to perform transactions and monitor your finances securely.

Split Loan Structure

Bank Australia allows you to split your loan between variable and fixed portions. This flexibility lets you benefit from the stability of fixed rates while taking advantage of potential savings from variable rates.

Fixed Rate Lock

With Bank Australia's fixed rate lock, you can secure a fixed interest rate on your home loan while it settles. This feature protects you from rate increases, providing peace of mind during the settlement process.

Parental Pause

In times of financial strain, such as welcoming a new family member, you can pause your home loan repayments for three months or halve them for six months. Conditions apply, offering you breathing space during significant life changes.

Eco-Pause

Bank Australia's Eco-Pause allows you to pause repayments for three months or halve them for six months to fund eco-friendly upgrades like solar panels. This supports sustainable living while managing your financial commitments.

No Establishment Fees

Bank Australia offers home loans with zero establishment fees, reducing the initial cost of setting up your loan and providing immediate savings.

Flexible Repayment Options

Choose to make your loan repayments weekly, fortnightly, or monthly. This flexibility helps you align your repayments with your income schedule, making budgeting easier.

Fees & Charges

Bank Australia offers a transparent fee structure with many zero-cost options, though some fees apply under specific conditions, such as for offset accounts and credit cards.

Fee Type
Amount
Description
Establishment Fee
$0
No fee for establishing a home loan with Bank Australia.
1st Valuation Fee
$0
No fee for the first valuation of the property.
Platinum Rewards Credit Card Annual Fee
$189/year
An annual fee charged for holding a Platinum Rewards Credit Card.
Mortgage Discharge Fee
$275 + government fees
Payable when you discharge the mortgage. Statutory government registration fees will still apply.
Break Fee
Variable
Applies if you pay off a fixed loan early or make certain changes during a fixed period. Calculated at the time of the event.
Portability Fee - New Mortgage
$500
Charged when replacing a property securing a loan with a new property.
Offset Home Loan Annual Fee
$199/year
Annual fee for Offset Home Loans, debited on the anniversary date of funding.
Bridging Loan Fee
$595
Covers administration costs for mortgage secured loans, including preparing security documents.
Rate Lock Fee
0.10% of loan amount (min $50)
Secures the interest rate for a fixed period before settlement.
International Transaction Fee
3% of transaction value
Applies to transactions made in a foreign currency.

Fees subject to change. Refer to lender documentation for current rates.

Eligibility Criteria

Bank Australia offers home loans to eligible individuals, focusing on accessibility and community values. They cater to a range of borrowers with flexible lending options and competitive rates.

Must be at least 18 years old.
Must be an Australian resident or citizen.
Must provide proof of income, such as recent payslips or tax returns.
Must have a satisfactory credit score verified by the bank.
Loan-to-Value Ratio (LVR) must be between 60% and 96%.
Must provide a property valuation for the intended purchase.
Must provide bank statements for the last three months.
Must be a natural person, not a legal entity.

Important Notes

  • LMI may be required for loans with an LVR above 80%.
  • Special reduced rates available for Clean Energy loans, subject to eligibility.
  • Refinance offer available with a reduced interest rate for the life of the loan. Check the details of a particular offer before making an application.

Bank Australia Home Loan Pros & Cons

Our expert take on whether Bank Australia is right for you

Pros

  • +Competitive interest rates below market average
  • +No establishment or monthly fees
  • +Ethical and eco – friendly banking practices
  • +Mortgage offset account available
  • +Split loan structure options

Cons

  • –Poor customer service with long wait times
  • –Issues with online banking services
  • –Potential hidden fees and break costs for fixed – rate loans

Best For

  • Eco-conscious borrowers
  • Customers seeking ethical banking practices
  • Borrowers looking for competitive interest rates

Not Ideal For

  • Borrowers needing robust customer service
  • Tech-savvy users requiring seamless online banking
💡

Bheja Verdict: Bank Australia offers competitive home loan rates with a strong ethical focus, but potential borrowers should be aware of customer service challenges.

Expert Secrets (Why Use Us?)

Insider knowledge about Bank Australia that most borrowers don't know

LMI Cost Examples

1For a $500,000 loan at 85% LVR, LMI costs $6,000.
2At 90% LVR for the same loan, LMI increases to $12,500.
3A 95% LVR on a $500,000 loan incurs $21,000 in LMI.
4A $750,000 loan at 85% LVR requires $9,000 in LMI.

Fee Waivers

$8 monthly account fee waived for schools or not-for-profits.

Offset Benefits

A $10,000 offset account saves approximately $49 per month, totaling $588 annually.
A $25,000 offset account saves approximately $123 per month, totaling $1,476 annually.
A $50,000 offset account saves approximately $245 per month, totaling $2,940 annually.
A $100,000 offset account saves approximately $490 per month, totaling $5,880 annually.

Admin & Logistics (The Help Desk)

Everything you need to manage your loan

Application Process

5 Steps
1
Contact Bank Australia: Call Bank Australia at 132 888 to discuss your intention to discharge the loan and obtain the necessary forms. (Tip: Make sure to call during business hours: Mon-Fri 8am-8pm, Sat 9am-2pm AEST/AEDT.)
2
Complete and Submit Discharge Request Form: Fill out the discharge request form with all required details and sign it. Submit the form to Bank Australia. (Tip: Double-check all information for accuracy to avoid delays.)
3
Pay Discharge Fee: Pay the $275 discharge fee. Be aware that additional statutory government registration fees may apply. (Tip: Confirm the total amount with the bank to ensure all fees are covered.)
4
Wait for Processing: The bank will process your request, which can take up to 21 business days. (Tip: Plan ahead and submit your request well in advance of any settlement dates.)
5
Final Settlement: Once processed, coordinate with your settlement agent to finalize the discharge. (Tip: Ensure all parties are informed of the timeline to avoid any last-minute issues.)

Processing Times

Discharge ProcessUp to 21 business days once the signed request is received.
💡

Pro Tips

  • Submit your discharge request at least 3 weeks before your intended settlement date to avoid delays.
  • Ensure all documents are correctly filled out and signed to prevent processing delays.
  • Check for any additional government fees and factor them into your budget.
  • Keep a copy of all submitted documents for your records.
  • Contact customer service if you have not received confirmation of your discharge within the expected timeframe.

Bank Australia Mortgage Calculator

Estimate your repayments using current Bank Australia home loan rates

Over 30 years, borrowing $480,000 at 5.88%, total cost including interest and known fees could be around $1,166,285. Estimated monthly repayment: $2,840.92.

Estimated total cost over 30 years
$1,166,285
Estimated repayment
$2,840.92
monthly repayment
Amount you borrow: $480,000 · At 5.88% · Variable — can change with the market

This loan can be split between fixed and variable. This estimate uses one option only.

Known fees in this estimate

Discharge fee
$275
Monthly fee
$398 / month
Total ongoing fees (30 yrs)
$143,280
How is this calculated?

Estimated total cost includes the amount borrowed, interest over the full loan term, and any upfront, ongoing, and discharge fees published by the lender. It does not include stamp duty, LMI, or savings from an offset account.

The revert rate is the rate your loan may switch to when a fixed, introductory, or interest-only period ends. Where a lender hasn't published this rate, we use an estimate.

Cost breakdown

Amount you borrow
$480,000
Total interest
$542,730
Upfront fees
$0
Ongoing fees
$143,280
Discharge fee
$275
Estimated total cost
$1,166,285
  • These figures are estimates only. Your actual repayments and costs may differ. Confirm all details with your lender before making a decision.
  • Where a lender hasn't published their revert rate (the rate that applies after a fixed, introductory, or interest-only period ends), we estimate it. Your repayments may change when this period ends.
  • Split loans and offset accounts aren't included in this estimate.
  • For product comparison and comparison rates, see the rates table above.

Still Unsure? Let a human handle it.

Not sure if Bank Australia is right for you? Our brokers can help you compare options.

Frequently Asked Questions

For simple applications, conditional approval typically takes 3-4 business days. More complex cases can take up to 10 business days.

4.8(4 reviews)

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