Bank of China Home Loans: The 2026 Review

Bank of China was established in 1912, making it one of the oldest banking institutions in China. Originally founded to support international trade and economic development, the bank has grown significantly over the past century. It has achieved numerous milestones, including expanding its operations worldwide, which has positioned it as a key player in the global banking industry.

Today, Bank of China operates as a major international bank with a strong presence in Australia. Headquartered in Sydney, it serves all Australian states and territories, offering a comprehensive range of banking services. The bank differentiates itself by leveraging its international expertise and providing competitive home loan products. It positions itself as a viable alternative to Australia's Big 4 banks, focusing on competitive interest rates and efficient service delivery.

Bank of China targets international clients and Australian borrowers who value its global banking capabilities. It offers appealing home loan features such as redraw facilities and offset accounts, with interest rates ranging from 5.18% to 7.95%. Despite strict eligibility criteria, including genuine savings and LVR limits, the bank is praised for its efficient processing and settlement services, making it an attractive option for eligible borrowers.

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

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

Bank of China offers competitive home loan products with features like offset accounts, redraw facilities, and flexible repayment options, appealing to borrowers seeking financial flexibility and efficient service. With interest rates ranging from 5.18% to 7.95%, the bank provides value through competitive pricing and stringent eligibility criteria.

• Extra Repayments: Borrowers can make additional repayments without incurring fees, including for Buy Now, Pay Later (BNPL) or line of credit products. This feature allows borrowers to reduce their loan principal faster, saving on interest over the loan term.
• Online Banking Access: All home loan products come with access to comprehensive online banking features. This provides borrowers with convenience and control, enabling them to manage their loans, track repayments, and access account information anytime, anywhere.
• Redraw Facility: A redraw facility is available, allowing borrowers to access extra repayments made on their loan. This feature offers flexibility, enabling borrowers to use funds for unexpected expenses or investment opportunities while maintaining control over their finances.
• Early Repayment Option: Borrowers can make early repayments of up to $10,000 per settlement anniversary without penalties. This allows for quicker loan payoff and interest savings, providing financial flexibility and reducing the overall loan cost.
• Offset Account: An offset account can be linked to the home loan, reducing the interest payable by offsetting the loan balance against the account balance. This feature helps borrowers save on interest and potentially shorten the loan term.
• Competitive Interest Rates: With rates ranging from 5.18% to 7.95%, Bank of China offers competitive pricing on its home loan products. This makes it an attractive option for borrowers seeking cost-effective financing solutions.
• Genuine Savings Requirement: The bank enforces a strict genuine savings policy, ensuring borrowers demonstrate financial responsibility. This requirement helps maintain loan quality and stability, benefiting both the bank and the borrower.
• Strict LVR Limits: Bank of China does not accept high Loan-to-Value Ratios (LVRs) over 90% or certain securities like granny flats. This policy ensures risk management and protects borrowers from over-leveraging.

Bank of China provides a transparent fee structure for its home loan products, ensuring borrowers understand potential costs associated with their loans.

• Application Fee: $350 - Charged when applying for a home loan, covering processing and administration costs.
• Annual Fee: $190-$395 (Annual) - Varies by product, charged annually for maintaining the loan account.
• Valuation Fee: Varies by product - Covers the cost of property valuation, which may vary depending on the property's location and value.
• Settlement Fee: Varies by product - Charged at the settlement of the loan to cover administrative costs associated with finalising the loan.
• Discharge Fee: $200-$300 - Applies when the loan is fully paid off or refinanced, varying by product.
• Rate Lock Fee: Variable - Optional fee to lock in an interest rate before settlement, providing protection against rate increases.
• Extra Repayment Penalty: $0 - No penalty for early repayments up to $10,000 per settlement anniversary.

Bank of China caters to borrowers seeking competitive home loans with strict eligibility criteria, focusing on genuine savings and acceptable loan-to-value ratios (LVRs).

• Must be at least 18 years old.
• Must be an Australian citizen or permanent resident.
• Must demonstrate stable income and employment to support loan repayments.
• Must have a good credit history with no recent defaults.
• Must provide a minimum deposit of 10% of the property's value, as high LVRs over 90% are not accepted.
• Must have genuine savings as part of the deposit.
• Property must be a residential property; certain securities like granny flats are not accepted.
• Customer must be a natural person rather than another legal entity.

• Lenders Mortgage Insurance (LMI) may be required for loans with an LVR above 80%.
• Borrowers can make early repayments up to $10,000 per settlement anniversary without penalties.
• Bank of China does not accept high LVRs over 90%, making it essential to have a substantial deposit.