Bank Australia Home Loans Review for Australian Expats
Bank Australia is known for its ethical and sustainable banking practices. It is one of the few banks in Australia that is certified carbon neutral, and it uses renewable energy to power all of its offices. Bank Australia also does not invest in harmful industries, such as fossil fuels, live animal exports, or nuclear weapons.
Is Bank Australia the lender for your Aussie expat home loan?
- Borrow up to 90% of the property purchase price
- Ethical and sustainable banking practices
- Flexible lending criteria
Bank Australia Home Loan Options
Bank Australia offers the following home loan products to Australian expats living overseas.
Variable Rate Loan
Fixed Rate Loan
Split Rate Loan
The variable rate home loan is the most common mortgage type and has an interest rate that can change over time. This type of loan can be a good option for borrowers who want flexibility and who are able to afford fluctuations in interest rates.
The fixed rate home loan has an interest rate that is fixed for a set period of time, typically 1, 2, 3, or 5 years. This type of loan can be a good option for borrowers who want stability and who are able to lock in a low interest rate for a period of time.
The split rate home loan combines a variable rate with a fixed rate. This type of loan can be a good option for borrowers who want to get the best of both worlds, flexibility and stability.
Bank Australia Home Loans Review
Here are the pros and cons of choosing a Bank Australia home loan to buy property in Australia.
| Pros | Cons |
|---|---|
More flexible lending criteria for expat home loans. | Potentially fewer mortgage product options compared to major banks that offer specific packages for expat borrowers. |
Competitive interest rates on its home loans. | Not as well-known as some other banks. |
No early repayment penalty. | Fewer branches with not all being open 24/7. |
One of the few banks in Australia that is certified carbon neutral. | Minimum balance requirements on offset accounts may be harder to meet for expats who aren't residents. |
Allow us to find you the perfect home loan.
Apply online to get expert recommendations with real interest rates and repayments.
Bank Australia Home Loan Features
Bank Australia offers the following home loan features.
| Feature | Details |
|---|---|
Eco Pause | Allows you to pause your repayments for up to 6 months if you are making energy-efficiency improvements to your home. This can help you save money on your energy bills and reduce your carbon footprint. |
Parental Pause | Allows you to pause your repayments for up to 12 months if you are taking time off work to care for a new child. This can help you manage your finances during a busy time. |
100% Offset | Offset your loan balance with your savings account. This can save you money on interest payments. |
Redraw Facilities | Access any additional repayments you've made on your home loan. This feature can be particularly useful if you want to use those funds for other investments or unexpected expenses. |
Facts About Bank Australia
Bank Australia is a customer-owned banking institution founded in 1957 as the CSIRO Co-operative Credit Society and has since grown to become one of the largest customer-owned banks in Australia.
It adopted the Bank Australia name in 2011 after merging with Members Equity Bank. It operates nationally, but its headquarters are in Melbourne. It has a network of branches across Victoria, New South Wales, Queensland and the ACT.
In 2021, Bank Australia was named the world's most sustainable bank in the Dow Jones Sustainability Index. It has been rated as one of the most trusted banks in Australia.
How Do I Apply for an Expat Mortgage with Bank Australia?
To apply for an Australian expat home loan with Bank Australia while living overseas, you will need to do the following.
- Contact a mortgage broker, who will be able to assess your eligibility for a loan and guide you through the application process.
- Provide the required documentation, such as proof of identity and Australian citizenship and proof of income from your overseas employment.
- Fill in the loan application and submit it, after which Bank Australia will assess your eligibility and make a decision. If your application is approved, you will be offered a loan.
Here are some tips for applying for an Australian expat home loan.
- Start your research early. The application process can take several weeks, so it’s important to start gathering your documents and getting your finances in order as early as possible.
- Get professional help. A mortgage broker can help you understand the different loan options available to you and guide you through the application process.
- Be prepared to provide documentation. Bank Australia will need to see proof of your income, employment, and visa status.
- Be realistic about your budget. Make sure you can afford the repayments on your loan before you apply.
We can help you secure a home loan with Bank Australia or any other lender to buy property in Australia from overseas.
Who is Eligible?
Australian expats who are living and working overseas are eligible for a home loan with Bank Australia. They must:
- Be an Australian citizen or permanent resident
- Have a valid visa that allows them to live and work overseas
- Have a minimum income of AUD$70,000 per year
- Have a good credit history
- Be able to afford the repayments on the loan
Foreign investors who are not Australian citizens or permanent residents may also be eligible for a home loan with Bank Australia. To be eligible, they must:
- Have a valid visa that allows them to live and work in Australia
- Have a minimum income of AUD$100,000 per year
- Have a good credit history
- Be able to afford the repayments on the loan
In addition to these general eligibility requirements, Bank Australia may also consider other factors when assessing an application for a home loan, such as the borrower’s employment history, savings, and assets.
What Documents Do I Require?
Bank Australia requires the following documents for a home loan from overseas.
Personal Identification
This may include a current passport issued by an Australian government (or one that has expired within the last 2 years), a card issued by an Australian State or Territory for the purpose of proving the person's age, which contains a photograph of the person in whose name the document is issued, or a current driver's licence or permit issued by an Australian State or Territory that contains the person's photograph.
Proof of Income
This may include payslips for the past 3 months, bank statements showing salary deposits for the past 3 months, and tax returns for the past 2 years.
Proof of Employment
This may include your employment contract or letter from your employer and PAYG payment summary for the past 3 months.
Proof of Residency
This may include a copy of your passport showing your current visa status and a utility bill or other official document showing your current address.
Other Documents
This may include a letter from your financial advisor confirming your financial capacity to repay the loan and a valuation report for the property you are buying.
In addition to these documents, Bank Australia may also require additional documentation depending on your individual circumstances. For example, if you are self-employed, you may need to provide additional documentation to prove your income.
Other Related Products from Bank Australia
First Home Buyer Loan
Their first home buyer loan is designed for first home buyers and offers a number of benefits, such as a lower interest rate and a government grant.
Low Doc Loan
Their low doc home loan is designed for borrowers who do not have a lot of documentation to support their application, such as self-employed borrowers or borrowers with a poor credit history.
Renovation Loan
Their renovation loan is designed for borrowers who want to renovate their home and offers a number of benefits, such as a higher loan-to-value ratio and a longer repayment period.
Need a Home Loan with Bank Australia?
Bank Australia is a well-respected and reputable bank that offers a variety of ethical and sustainable banking products and services. It is a good choice if you are looking for a bank that you can trust and that is committed to making a positive impact on the world.
However, qualifying for a home loan with them from overseas can be challenging. But there’s no reason to worry because we’re here to help!
Odin Mortgage specialises in overseas Australian expat, permanent resident, and foreign investor home loans. We have years of experience in securing such types of mortgages for clients with a diverse list of situations. Simply contact us today to find out your best options available and how to proceed.
Other Australian Lender Reviews
Allow us to find you the perfect home loan.
Apply online to get expert recommendations with real interest rates and repayments.
FAQs About Bank Australia
Can I apply for a Bank Australia home loan while living abroad?
Yes, Bank Australia offers home loan solutions specifically designed for Australian expats.
Are the interest rates for expats higher compared to residents?
No, Bank Australia offers expats competitive interest rates similar to those offered to residents.
How can I make additional repayments on my loan?
You can make additional repayments through Bank Australia’s online banking platform or direct transfers.
Are there any restrictions on the type of property I can purchase with a Bank Australia home loan?
Bank Australia typically provides home loans for residential properties. However, it’s recommended to check with the bank for specific property eligibility.
What happens if I face difficulties in making repayments while living overseas?
Bank Australia understands the challenges faced by expats and offers support options in case you encounter financial difficulties. Contact their customer service for assistance.
Featured In
