Bank of China Home Loans: The 2026 Review

Founded in 1912, Bank of China has established itself as a cornerstone in the international banking sector. Originally created to serve the financial needs of China, it has expanded its reach globally, including a significant presence in Australia. The bank's long history is marked by its commitment to innovation and service, adapting to the changing financial landscape while maintaining its foundational principles.

Today, Bank of China operates as a niche bank in Australia, focusing on serving Chinese expatriates and international clients. With its headquarters in Sydney, New South Wales, the bank offers a wide range of financial services, including home loans that feature redraw facilities and offset accounts. It distinguishes itself from the Big 4 banks by offering competitive interest rates and accepting overseas income, catering to a specific segment of the market.

Bank of China targets non-residents and those with overseas income, providing specialised services such as multilingual support and tailored financial products. Despite its strict eligibility criteria, the bank's strategic focus allows it to offer unique advantages, including $0 application fees on certain products and the flexibility to make extra repayments without fees. This targeted approach enables Bank of China to meet the unique needs of its clientele, setting it apart in the Australian banking landscape.

• Legal Name: Bank of China (Australia) Limited
• ABN: 28110077622
• ACN: 110077622
• Established: 1912
• Headquarters: Sydney, New South Wales, Australia
• Type: Subsidiary
• Ownership: Independent

• Website: https://www.bankofchina.com
• Phone: 1800 095 566

Bank of China offers home loan products with features designed to provide financial flexibility and cost savings, including competitive interest rates and specialised services for international clients.

• Online Banking Access: Bank of China provides comprehensive online banking features for all home loan products, allowing borrowers to manage their loans conveniently from anywhere. This includes viewing balances, making payments, and accessing statements, enhancing overall loan management efficiency.
• Redraw Facility: A redraw facility is available on all home loan products, enabling borrowers to access extra repayments made on their loan. This feature provides financial flexibility by allowing access to funds if needed, while still maintaining progress on loan repayment.
• Extra Repayments: Borrowers can make extra repayments without incurring fees, including for buy now, pay later (BNPL) or line of credit products. This feature helps reduce the loan balance faster, potentially saving on interest costs over the life of the loan.
• Early Repayment Option: Bank of China allows early repayments up to $10,000 per settlement anniversary without penalty. This option offers borrowers the chance to pay down their loan quicker, reducing the total interest paid.
• Offset Account: An offset account can be linked to select home loan products, reducing the interest payable on the loan by offsetting the loan balance with the account balance. This can lead to significant interest savings over the loan term.
• Competitive Interest Rates: Bank of China offers competitive interest rates, particularly for borrowers with strong deposits. This can result in lower monthly repayments and overall interest costs, making it an attractive option for eligible borrowers.
• No Application Fees: Some home loan products come with $0 application fees, reducing upfront costs for borrowers. This feature can make the process of securing a loan more affordable.
• Acceptance of Overseas Income: Bank of China accepts overseas income for loan applications, catering to international clients and expatriates. This feature expands borrowing options for those earning income outside Australia.
• Multilingual Support: The bank provides multilingual support, ensuring clear communication and understanding for non-English speaking clients. This service is particularly beneficial for Chinese expatriates and international clients.
• Strict Eligibility Criteria: Borrowers should be aware of strict eligibility criteria, including requirements for genuine savings and limitations on high loan-to-value ratio (LVR) loans over 90%. Understanding these conditions is crucial for potential applicants.

Bank of China offers a transparent fee structure with variations across its home loan products, providing options like $0 application fees for some loans and competitive ongoing costs.

• Application Fee: $350 - Charged at the start of the loan process; some products offer $0 application fees.
• Annual Fee: $190-$395 (Annual) - Varies by product; charged annually for maintaining the loan.
• Valuation Fee: Variable - Covers the cost of property valuation; amount depends on property type and location.
• Settlement Fee: $0 - No fee for settlement on most products, promoting cost-effective entry.
• Discharge Fee: Varies by product - Charged upon closing the loan; varies depending on the product and remaining balance.
• Rate Lock Fee: Variable - Optional fee to secure a fixed interest rate before settlement.

Bank of China primarily caters to Chinese expatriates and international clients, offering competitive home loan products with features like redraw facilities and offset accounts. The bank is known for accepting overseas income, but maintains strict eligibility criteria, especially regarding genuine savings and high LVR loans.

• Must be at least 18 years old.
• Must be a natural person, not a legal entity.
• Australian citizens, permanent residents, or eligible visa holders are accepted.
• Acceptance of overseas income for loan applications.
• Minimum deposit of 10% is required, with stricter conditions for deposits below 20%.
• Maximum LVR of 90%; loans above 80% LVR may require Lenders Mortgage Insurance (LMI).
• Must demonstrate genuine savings.
• Good credit history is required.

• Loans with LVR above 80% may require Lenders Mortgage Insurance (LMI).
• The bank offers $0 application fees on some products, providing cost savings for eligible borrowers.
• Extra repayments are allowed without fees, offering flexibility in loan management.