Bank First Home Loans: The 2026 Review

Bank First, legally known as Victoria Teachers Limited, was established in 1972 to address the financial needs of educators in Victoria. Originally named the Victoria Teachers Credit Union, the institution has evolved over the decades, rebranding as Bank First to reflect its broader community focus. This transition marked a significant milestone, underscoring its commitment to being a customer-owned bank that prioritises the interests of its members over profits.

Today, Bank First operates as an independent, community-owned bank headquartered in Hawthorn East, Victoria. It offers a wide array of financial products and services, with a portfolio of 137 products and 138 variations. The bank differentiates itself from the larger, profit-driven banks by focusing on personalised customer care and competitive interest rates. Its business model emphasises community engagement and customer satisfaction, which are central to its operations.

Bank First primarily targets educators and first home buyers, providing tailored financial solutions that meet their specific needs. The bank's value proposition is rooted in its customer-owned structure, offering fee-free transactions and attractive interest rates. With a delivery model that includes both physical branches and robust online services, Bank First ensures accessibility and convenience for its members, maintaining a strong presence in the community and a commitment to financial accessibility.

• Legal Name: Victoria Teachers Limited
• ABN: 44087651769
• Established: 1972
• Headquarters: Hawthorn East, Victoria
• Type: Community-Owned Bank
• Ownership: Independent

• Website: https://www.bankfirst.com.au
• Phone: 1300 654 822
• Email: [email protected]
• Address: 117 Camberwell Rd, Hawthorn East, VIC 3123

Bank First offers a range of flexible home loan features designed to enhance affordability and convenience for borrowers, particularly educators and first home buyers. With a focus on fee-free transactions and competitive rates, Bank First provides valuable options for managing home loans effectively.

• Minimum Redraw Amount: Borrowers can redraw a minimum of $500, providing easy access to additional funds when needed. This feature offers financial flexibility, allowing borrowers to manage cash flow effectively.
• Extra Repayments on Variable Loans: Make additional repayments on variable rate loans without incurring any fees. This flexibility allows borrowers to pay off their loans faster and reduce overall interest costs.
• Online Banking Access: Bank First provides comprehensive online banking features, ensuring borrowers can manage their loans conveniently from anywhere. This includes mobile and internet banking services for easy account management.
• NPP PayID Compatibility: Loans can be linked to an NPP PayID, facilitating fast and secure payments. This feature enhances convenience by allowing borrowers to make and receive payments seamlessly.
• Additional Repayments During Fixed Rate: Borrowers can make up to $30,000 in additional repayments annually during the fixed rate period without incurring break costs. This offers a degree of flexibility to reduce loan principal while maintaining a fixed interest rate.
• Split Loan Options: Borrowers have the option to split their home loan into variable and fixed components. This allows for a balanced approach to managing interest rate fluctuations and repayment strategies.
• Fee-Free Transactions: Bank First offers no account keeping fees and free everyday transactions, reducing the overall cost of managing a home loan. This is particularly beneficial for budget-conscious borrowers.
• Cashback Offers for First Home Buyers: Special cashback deals are available for first home buyers, enhancing affordability and making it easier to enter the housing market. This incentive supports new buyers in managing upfront costs.
• Digital Banking Services: Comprehensive digital banking services, including a mobile app, provide borrowers with convenient access to loan information and management tools. This ensures ease of use and accessibility.

Bank First maintains a transparent fee structure, offering competitive rates and minimal fees to enhance affordability for borrowers, particularly educators and first home buyers.

• Settlement Fee: $400 - Costs associated with processing the documentation and settlement of the loan.
• Discharge Of Mortgage Fee: $395 - Applies per title when discharging a mortgage.
• Arrears Fee: $20 - Charged when a loan is 7 to 30 calendar days in arrears.
• Break Cost Fee: Variable - Applies if the loan is repaid early or additional payments exceed $30,000 per annum during a fixed term.
• Premier Package Home Loan Fee: $390 (Annual) - Annual fee for maintaining the Premier Package Home Loan.
• Premier/Rewards Package Home Loan Fee: $390 (Annual) - Annual fee applicable for the Premier or Rewards Package Home Loan.

Bank First caters primarily to Australian residents, focusing on educators and first home buyers, offering flexible and accessible home loan options.

• Applicants must be at least 18 years old.
• Individual applicants must be permanent residents of Australia.
• For joint applications, at least one applicant must be a permanent resident, with additional requirements for non-resident applicants.
• Applicants must demonstrate a stable income and employment history to ensure loan repayment capability.
• A good credit history is required, with a credit check conducted as part of the application process.
• A minimum deposit of 5% may be accepted with a guarantor, otherwise higher deposits are typically required.
• Loan-to-Value Ratio (LVR) limits may vary, with some products allowing up to 95% LVR.
• Properties must meet specific criteria set by Bank First, including geographic restrictions for certain products.

• Lenders Mortgage Insurance (LMI) is required for loans with an LVR above 80%.
• First home buyers may benefit from cashback offers and special programs to enhance affordability.
• Bank First offers flexibility with additional repayments allowed without penalties.