Cairns bank Home Loans: The 2026 Review

Cairns Bank, legally known as Cairns Penny Savings & Loans Ltd, was established in 1899 in Cairns, Queensland. It was founded to address the financial needs of the local community, providing a reliable banking option independent of the major banks. Over the years, Cairns Bank has maintained its commitment to community-focused banking, evolving its services to meet changing customer needs while preserving its local roots.

Today, Cairns Bank operates as a customer-owned financial institution, offering a range of banking products and services. It differentiates itself through its community-oriented approach, providing personalised service and competitive interest rates. The bank's independent status allows it to focus on member needs rather than shareholder profits, ensuring a customer-centric business model.

Cairns Bank targets local community members, first home buyers, and those seeking a personal banking experience. Its geographic focus remains on Cairns and the surrounding areas, offering products such as fixed and variable rate home loans with features like offset accounts and redraw facilities. With a commitment to low fees and customer-centric policies, Cairns Bank provides a compelling alternative to larger banks for borrowers seeking flexibility and personal service.

• Legal Name: Cairns Penny Savings & Loans Ltd
• ABN: 68087933757
• Established: 1899
• Headquarters: Cairns, Queensland
• Type: Customer-owned financial institution
• Ownership: Independent

• Website: https://cairnsbank.com.au

Cairns Bank offers flexible home loan options with features like offset accounts and redraw facilities, designed to provide financial flexibility and cost savings for borrowers.

• Offset Account: Cairns Bank provides offset accounts that help reduce the interest payable on your home loan by offsetting the loan balance with the funds in the account. This feature can significantly decrease the overall interest paid over the life of the loan, offering substantial savings.
• Redraw Facility: The redraw facility allows borrowers to access extra repayments made on their home loan, with a minimum redraw amount of $1,000 and a maximum advance capped at $50,000. This feature provides flexibility to manage unexpected expenses or investment opportunities.
• Loan Splits: Borrowers can split their home loan into up to four parts, allowing for a combination of fixed and variable rates. This feature helps manage interest rate risks and tailor repayments to suit financial goals, with an annual fee charged to the primary loan account.
• Lenders Mortgage Insurance (LMI): For loans with deposits under 20%, LMI is required to protect the lender. This allows borrowers to secure a home loan with a smaller deposit, making it easier to enter the property market sooner.
• Flexible Repayment Options: Cairns Bank offers various repayment frequencies, including weekly, fortnightly, and monthly options. This flexibility helps borrowers align repayments with their income schedule, improving cash flow management.
• Digital Banking Features: With online banking and a mobile app, Cairns Bank provides convenient access to loan management tools. These digital features allow borrowers to monitor their loan, make payments, and access statements anytime, enhancing overall convenience.
• Community-Focused Service: As a customer-owned bank, Cairns Bank prioritises personalised service and community engagement. This approach ensures borrowers receive attentive support tailored to their unique financial needs, distinguishing it from larger banks.

Cairns Bank maintains a transparent fee structure, aiming to keep charges low while providing flexibility and personalised service to its members.

• Loan Establishment Fee: $200 - Charged for setting up a new loan.
• Corporate Cheque Fee: $10 - Payable for each corporate cheque issued.
• Discharge Settlement Fee: $100 - Applicable when attendance at settlement is required.
• Account Keeping Fee: $12 (Monthly) - Charged monthly for maintaining the account.
• Discharge Preparation Fee: $60 - Charged when the loan balance is repaid in full and a Form 3 is prepared.
• Arrears Fee: $25 - Applicable for loans in arrears for two months or more.
• Variation of Loan Contract Fee: $200 - Payable when applying to vary a loan contract.
• Annual Package Fee: $395 (Annual) - Charged annually for maintaining a package loan.
• Break Cost Administration Fee: $400 - Applies when a fixed rate loan is repaid during the fixed rate period.
• Loan Switching Fee: $200 - Charged when applying to switch loan contracts or securities.

Cairns Bank offers home loans to Australian citizens and residents, providing flexible options for first home buyers and investors with a focus on community-oriented service.

• Must be at least 18 years old.
• Must be an Australian citizen or permanent resident.
• Applicant must be a natural person, not a legal entity.
• Demonstrated ability to repay the loan through stable income and employment.
• Good credit history with no significant defaults.
• Minimum deposit of 5% may be accepted with a guarantor, otherwise typically 20%.
• Loan-to-Value Ratio (LVR) up to 95% for some products, typically 80% without LMI.

• Lenders Mortgage Insurance (LMI) is required for loans with an LVR above 80%.
• Special programs available for first home buyers, potentially allowing lower deposit requirements.
• Fixed rate loans may incur break cost fees if terminated early.