What are the monthly repayments on a $500,000 loan at First Option Bank?

For a $500,000 loan at 5.99% over 30 years, the monthly repayment would be $2,995. Over the loan term, you'd pay a total of $578,034 in interest.

Are there any hidden fees with First Option Bank home loans?

First Option Bank is transparent with their fees, though there is a high annual fee of $375 for package home loans. It's important to consider this when choosing your loan package.

How much can I save by refinancing with First Option Bank?

Refinancing a $500,000 loan with First Option Bank could save you $166 per month compared to market rates, totaling $59,688 over 30 years.

What is the discharge process like with First Option Bank?

The discharge process takes about 10-15 business days once the completed form is received, and there is a discharge fee of approximately $350.

How competitive are First Option Bank's interest rates?

First Option Bank offers competitive rates that can save you significant amounts over the life of your loan. For example, a $1,000,000 loan can save you $332 per month, totaling $119,377 over 30 years.

Is it better to use a broker or go directly to First Option Bank?

While First Option Bank offers competitive rates, brokers can provide more choices and tailored loan features, potentially leading to better deals in a complex lending environment.

How easy is it to deal with First Option Bank for home loans?

Customers find First Option Bank easy to deal with, praising their personable service and competitive interest rates, with positive interactions reported with representatives like Rhonda.

How long does refinancing take with First Option Bank?

The refinancing process with First Option Bank typically takes 2-4 weeks, depending on the complexity of your situation and how quickly you respond to requests for information.

UPDATED JUL 7, 2026

First Option Bank Home Loans: The 2026 Review

Competitive rates starting at 5.99% p.a. make First Option Bank a standout. Watch out for the $375 annual fee on package loans. Ready to save?

Bheja Verdict

Good

3.9/5

✓

Highly competitive rates across products

✓

Wide range of loan options

Check Eligibility

First Option Bank Home Loans At a Glance

🏷️Best Rate Available

5.99%

Variable • Owner Occupied

💳Application Fee

$250

Upfront fee applies

📅Monthly Fee

Ongoing service fee

Loan Range:$5K - $100.0M

LVR:Up to 95%

Products:24 variations

Offset Account:Available

Current First Option Bank Home Loan Rates

Last updated: July 2026

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Average Rate: 6.21%
Best Rate: 6.19%
Monthly Payment: $3,059

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SIMPLE HOME LOAN
First Option Bank
5%-30% DepositRedraw
6.19%
Interest Rate
Variable
6.19%
Comparison Rate*
$3,059
per month
Principal And Interest
Visit lender’s site
Check Eligibility
Fees:
Application
$400
Discharge
$175+ other fees may apply
COMPLETE PACKAGE HOME LOAN
First Option Bank
5%-30% DepositOffsetRedraw
6.24%
Interest Rate
Variable
6.59%
Comparison Rate*
$3,075
per month
Principal And Interest
Visit lender’s site
Check Eligibility
Fees:
Application $250Ongoing/year $375
Discharge
$175+ other fees may apply

First Option Bank Product Statistics

Real-time insights and market analysis

First Option Bank offers 2 home loan products across 24 variations, the average variable rate is 6.36% p.a., the best available rate is 5.99% p.a..

Average Variable Rate

6.36%

24 products

Average Fixed Rate

—

0 products

Best Available Rate

5.99%

Variable • Owner Occupied • P&I

Total Products

24 variations

Fee Summary

Application Fee

$250 - $400

Monthly Fee

Discharge Fee

$175

Late Payment Fee

Key Features

Across First Option Bank's range: 12 include an offset account, 24 offer redraw, 24 allow extra repayments.

Offset Account

50%

Redraw Facility

100%

Extra Repayments

100%

Split Loan

—

Product Ranges

First Option Bank's interest rates range from 5.99% to 6.69% p.a., maximum LVR from 60% to 95%, loan amounts span $5,000 to $100,000,000.

Interest Rates5.99% — 6.69%

Max LVR60% — 95%

Loan Amount$5K — $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 First Option Bank Compares

FEATURE	First Option Bank	Australian Mutual Bank LTD	Hume Bank	Fire Service Credit Union	Newcastle Permanent Building Society
Best Variable Rate	5.99%	5.64%	5.99%	5.89%	5.99%
Best Fixed Rate (3yr)	—	6.14%	6.39%	—	6.39%
Application Fee	$250	$250	$199	$150	$350
Monthly Admin Fee	$0BEST	$0	$0	$0	$0
Offset Account
Redraw Facility
Product Variations	24	182	115	5	109

💡

Bheja Insight: First Option Bank offers offset accounts like most community-owned lenders, helping reduce interest while keeping funds accessible.

About First Option Bank

Company overview and contact information

First Option Bank is a community-owned financial institution based in Australia, operating through both branches and online platforms. As an Authorized Deposit-taking Institution (ADI), it is regulated by APRA, ensuring a secure banking environment. Although the exact year of establishment is not specified, First Option Bank stands out for its community-focused ownership structure, emphasizing personalized service and local engagement.

The bank offers a range of home loan products with 24 variations, featuring competitive interest rates from 5.99% to 6.69%. This diverse product lineup is designed to cater to a wide array of customers, from first-time homebuyers to those looking to refinance. First Option Bank's approach combines the convenience of online banking with the personalized service of branch locations, making it a versatile choice for borrowers.

What sets First Option Bank apart is its commitment to community values and personalized service. While specific special programs are not highlighted, the bank's reputation is bolstered by accolades such as the Kids Bonus Saver being recognized in the Finder Banking Awards 2026. This recognition underscores their commitment to providing valuable financial products and services to their community.

Company Details

Legal Name: First Option Bank

ABN: 95087650735

Headquarters: Australia

Ownership: community_owned

Key Features

First Option Bank offers a range of flexible home loan features designed to enhance borrower convenience and savings, including offset accounts and fee-free extra repayments.

Redraw Facility

First Option Bank provides a redraw facility on its home loans, allowing borrowers to access extra repayments made on their loan. This feature offers financial flexibility by enabling access to funds when needed, without the need for a separate loan application.

Extra Repayments

Borrowers can make extra repayments on their First Option Bank home loans without incurring fees. This includes payments for Buy Now, Pay Later (BNPL) services or line of credit, helping to reduce the loan balance faster and save on interest costs.

Offset Account

Linking an offset account to a First Option Bank home loan can significantly reduce interest payments. For example, a $50,000 offset can save $250 per month, equating to $3,000 annually. This feature is available on select products, providing substantial cost savings.

Online Banking Access

First Option Bank offers comprehensive online banking features for its home loan products, allowing borrowers to manage their loans conveniently from any device. This includes checking balances, making payments, and viewing transaction history.

Email and SMS Alerts

Stay informed with First Option Bank's email and SMS alerts, which provide updates on loan status and important account changes. This feature enhances loan management by ensuring borrowers are always aware of their financial situation.

Portability

First Option Bank’s home loans offer portability, allowing borrowers to transfer their existing loan to a new property without the need to refinance. This feature provides convenience and potential cost savings during property transitions.

Interest-Only Periods

Borrowers can opt for interest-only periods on select First Option Bank home loans, offering flexibility in managing cash flow, particularly during financial transitions or investment phases.

Automated Valuations

First Option Bank utilises automated valuations for property assessments, streamlining the loan application process and providing faster loan approvals. This digital feature enhances efficiency and reduces waiting times for borrowers.

First Option Bank Home Loan Pros & Cons

Our expert take on whether First Option Bank is right for you

Pros

+Competitive interest rates below market average
+Allows extra repayments without fees
+Offers a redraw facility and offset account
+$3,000 cashback for refinancing over $250,000 (valid until June 2026)

Cons

–High annual fee for package home loans
–Temporary transaction limits above $5,000

Best For

Borrowers seeking competitive interest rates
Homeowners interested in refinancing with cashback offers
Customers who value community-owned banks
Individuals looking for flexible repayment options

Not Ideal For

Borrowers needing LMI waivers
Those seeking low annual fees on package loans

💡

Bheja Verdict: First Option Bank offers competitive home loan rates below the market average, making it a strong choice for cost-conscious borrowers.

First Option Bank Mortgage Calculator

Estimate your repayments using current First Option Bank home loan rates

Over 30 years, borrowing $480,000 at 5.99%, total cost including interest and known fees could be around $1,215,638. Estimated monthly repayment: $2,874.76.

Home loan option

Property price

Your deposit

Loan term (years)Repayment frequency

Estimated total cost over 30 years

$1,215,638

Estimated repayment

$2,874.76

monthly repayment

Amount you borrow: $480,000 · At 5.99% · Variable — can change with the market

Known fees in this estimate

Application fee: $400
Document fee: $150
Discharge fee: $175
Monthly fee: $500 / month
Total ongoing fees (30 yrs): $180,000

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: $554,913
Upfront fees: $550
Ongoing fees: $180,000
Discharge fee: $175
Estimated total cost: $1,215,638

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 First Option Bank is right for you? Our brokers can help you compare options.

Frequently Asked Questions

First Option Bank typically provides conditional approval within 3-5 business days. Full approval usually takes an additional 5-7 business days after conditional approval.