Bank First Home Loan Review for Australian Expats
Bank First is one of the largest customer-owned mutual banks in Australia, with over 100,000 members. Although it initially focused on providing banking services tailored to the needs of the education community, the lender has since evolved into a full-service bank, catering not only to educators but also to a broader range of customers across the country.
Is Bank First’s Australian expat home loan option right for your situation?
- Borrow up to 95% of the property purchase price
- Competitive interest rates
- Dedicated team of international bankers
Bank First Home Loan Options
Bank First offers the following home loan products to Australian expats living overseas.
Variable Rate Loan
Fixed Rate Loan
Split Rate Loan
A variable rate home loan means that your interest rate can change over time, depending on market conditions. This can be a good option for borrowers who are comfortable with the risk of interest rates rising.
A fixed rate home loan means that your interest rate will stay the same for a set period of time, usually 1, 2, 3, 5, or 10 years. This can provide peace of mind knowing that your monthly repayments will not change, even if interest rates rise.
A split rate home loan is a type of variable rate home loan where you can choose two different interest rates for the first and second halves of your loan term. This can be a good option for borrowers who want to take advantage of low interest rates in the short term, but who are also concerned about rising interest rates in the long term. Bank First offers split rate home loans with terms of 5 and 10 years.
Bank First Home Loan Review
Here are the pros and cons of choosing an Bank First home loan to buy property in Australia.
| Pros | Cons |
|---|---|
A range of loan products to choose from. | Lending criteria may be stricter. |
International service. | Documentation requirements may be more complicated. |
Flexible repayment options. | Potentially limited property choices. |
No early repayment fees. |
Allow us to find you the perfect home loan.
Apply online to get expert recommendations with real interest rates and repayments.
Bank First Home Loan Features
Bank First offers the following home loan features.
| Feature | Details |
|---|---|
Offset Account | Linked savings account that can be used to reduce the interest payable on your home loan. |
Redraw Facility | Withdraw money from your home loan, up to a certain limit. This can be useful if you need to access extra cash for unexpected expenses. |
Loan Portability | Allows you to transfer your existing home loan to a new property, saving time and paperwork when relocating. |
Introductory Rate | Lower interest rate offered for a limited period of time, usually 6 or 12 months. This can be a good way to save money on your monthly repayments in the short term. |
Facts About Bank First
Bank First is based in Victoria and was founded in 1972 as Victoria Teachers Mutual Bank by a group of educators who wanted to create a bank that would put the needs of its members first. It changed its name to Bank First in 2017.
It is a non-profit bank, which means that its profits are reinvested in the bank or returned to members in the form of lower fees and higher interest rates.
It is known for its good customer service, competitive rates, and commitment to social responsibility. In 2022, it was named the "Best Customer-Owned Bank in Australia" by Canstar.
How Do I Apply for an Expat Mortgage with Bank First?
Here are the steps on how to apply for an Australian expat home loan with Bank First while living overseas.
- Contact a Mortgage Broker: The first step is to contact a mortgage broker because they can help you understand the bank’s lending criteria for expats and answer any questions you have about the application process.
- Gather Your Documents: You will need to gather a number of documents to support your application, such as your passport, visa, proof of income, and proof of deposit. You can find a list of the required documents on Bank First’s website.
- Complete the Application Form: Once you have gathered your documents, you can complete the application form online or by mail. The application form will ask for information about your financial situation, your employment history, and your property purchase.
- Provide Supporting Documents: You will need to provide supporting documents to verify the information you have provided in the application form. This may include things like bank statements, tax returns, and employment contracts.
- Wait for Approval: Once you have submitted your application, Bank First will assess your application and make a decision. The decision process can take a few weeks.
- Sign the Loan Documents: If your application is approved, you will need to sign the loan documents. The loan documents will set out the terms of your loan, such as the interest rate, the repayment period, and the fees.
- Fund Your Purchase: Once you have signed the loan documents, Bank First will release the funds to your solicitor. Your solicitor will then use the funds to purchase the property on your behalf.
Odin Mortgage can help you throughout the loan application process, even beyond settlement. Please feel free to speak with us to discuss your needs and the best options available.
Who is Eligible?
Bank First offers home loans to a variety of borrowers, including Australian citizens, permanent residents, and foreign investors. Australian expats and Aussie permanent residents living overseas typically need to meet strict eligibility criteria. For example, they are typically required to have a higher income and a larger deposit.
Foreign investors living overseas may also be eligible for a home loan with Bank First, but they will need to meet stricter lending criteria. For example, they are generally required to have a high net worth and a large deposit.
In addition to the eligibility requirements listed above, Bank First may also consider other factors when assessing a home loan application, such as the borrower’s employment history, the borrower’s financial situation, and the property being purchased.
What Documents Do I Require?
Here are the documents that Bank First in Australia requires for a home loan from overseas with them.
Copy of Passport
A copy of your passport, showing your current visa status and expiry date.
Proof of Income
Bank First will require evidence of your income from overseas, such as bank statements, tax returns, or employment contracts.
Proof of Deposit
You will need to provide proof of a deposit of at least 20% of the property value. This can be in the form of bank statements, a letter from your bank, or a letter from your employer.
Property Valuation
Bank First will require a valuation of the property you are purchasing. This will be done by a qualified valuer.
Mortgage Insurance
If your deposit is less than 20%, you will be required to take out mortgage insurance. This will protect the lender in case you default on your loan.
Other Documents
Bank First may also require other documents, such as a letter from your accountant or a letter from your lawyer.
It is important to note that these are just the general requirements for a home loan with Bank First from overseas. The specific documents required may vary depending on your individual circumstances.
Here are some additional tips for gathering the required documents for a home loan with Bank First from overseas.
- Start Early: The document gathering process can take some time, so it is important to start early. This will give you enough time to obtain all of the required documents.
- Get Help From a Mortgage Broker: A mortgage broker can help you understand the documentation requirements and guide you through the process. They can also help you negotiate the best possible interest rate and terms for your loan.
- Be Prepared to Provide Translations: If your documents are not in English, you may need to provide translations that are certified by a qualified translator.
- Be Patient: The document gathering process can be time-consuming, so it is important to be patient. Bank First will need to verify all of your documents before they can approve your loan.
Other Related Products from Bank First
Interest Only Loan
With Bank First’s interest only home loan, you only pay the interest on your loan for a set period of time, usually the first 5 or 10 years. This can be a good option for borrowers who want to keep their monthly repayments low in the short term, but who are able to afford to make larger repayments in the long term. Bank First offers interest only home loans with terms of 5 and 10 years.
Low Doc Loan
A low doc home loan is a type of home loan that is designed for borrowers who do not have a lot of documentation to prove their income and expenses. This can be a good option for borrowers who are self-employed or who have a poor credit history. Bank First offers low doc home loans with a maximum loan amount of $750,000.
Bank First Construction Home Loan
A construction home loan is a type of home loan that is designed to help borrowers finance the construction of a new home. This type of loan typically has a higher interest rate than a regular home loan, but it also has a longer repayment period. Bank First offers construction home loans with terms of up to 30 years.
Need a Home Loan with Bank First?
Bank First stands out as a financial institution that combines its educational heritage with modern banking services, striving to provide value, convenience, and support to its customers in Australia. The lender provides a valuable opportunity for Australian expats to invest in property back home with its tailored features and benefits.
You may still need guidance and help to secure your home loan! It’s why we’re here to help.
Odin Mortgage has a team of specialist mortgage brokers who are experienced in helping Australian expats, permanent residents, and foreign investors living overseas secure a home loan in Australia. Speak with us to find out how we can help you get a home loan and not only that but also pay it off effectively!
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 First
Can non-resident Australian expats apply for a Bank First home loan?
Non-resident Aussie expats may be eligible, subject to meeting specific criteria such as income verification and creditworthiness.
Is the interest rate fixed or variable?
Bank First offers both fixed and variable interest rate options, providing flexibility for borrowers.
What is the maximum loan-to-value ratio (LVR) allowed?
The maximum LVR varies based on individual circumstances but generally ranges from 70% to 95%.
Can I make additional repayments on my loan?
Yes, Bank First Home Loan allows additional repayments, contributing to faster loan repayment.
Are there any prepayment penalties?
Bank First generally does not charge prepayment penalties, giving borrowers the flexibility to pay off their loan faster without incurring extra fees.
Can I apply for a joint home loan with another Aussie expat?
Yes, Bank First allows joint home loan applications, enabling Australian expat couples or partners to apply together.
Do I need to have a local Australian bank account to apply?
While having a local bank account can simplify transactions, it might not be a strict requirement. The bank can provide guidance on suitable banking arrangements.
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