Bank Australia was founded in 1957 as the CSIRO Co-operative Credit Society. In 2011, it then teamed up with 71 other co-operatives and credit unions to become Australia’s first customer-owned bank, before rebranding as Bank Australia in 2015.
Bank Australia prides itself on being a certified B Corporation, meaning it meets strict standards for corporate social and environmental responsibility, and does not lend to coal, gas or oil extraction projects. It’s also the only financial institution in Australia that maintains its own nature reserve, covering 2,117 hectares of land in Western Victoria.
| Offset accounts available | ✅ |
| Redraw facilities available | ✅ |
| Line of credit available | ❌ |
| Split rate option available | ✅ |
| Green loan available | ✅ |
| Ability to make extra repayments | ✅ |
| Internet banking available | ✅ |
| Salary crediting | ✅ |
| Choice of repayment flexibility | ✅ |
| Refinance available | ✅ |
| Services first home buyers | ✅ |
Bank Australia’s range of home loan products on offer currently includes:
Bank Australia offers home loans that may be appropriate for first home buyers, refinancers, those looking to build their own home on vacant land, those looking for bridging finance between their current home loan and their next loan, property investors and more.
However, when it comes to what types of borrowers Bank Australia lends to, there are a few points that prospective borrowers should keep in mind.
The first is that Bank Australia has a minimum required loan-to-value ratio (LVR) of 95%, meaning you won’t be approved for a home loan with Bank Australia if your saved deposit is less than 5% of your total proposed loan size. Additionally, depending on the suburb a property for purchase is located in, Bank Australia may require a lower minimum LVR in order to reduce the perceived risk of lending against a property in that area.
Bank Australia also likely won’t give you a home loan if you don’t have the capacity to repay your proposed home loan at a rate 3% higher than the advertised interest rate. This is because the Australian Prudential Regulation Authority (APRA) requires all lenders to assess an applicant’s ability to service their proposed home loan in the event of interest rate hikes.
Yes, Bank Australia provides home loans to first home buyers. While they don’t have a specific home loan product designed for first home buyers, they have several tools and resources available to first home buyers designed to help them navigate the process of buying a home for the first time.
Yes, Bank Australia is one of the 33 participating lenders chosen by the Federal Government to offer the Home Guarantee Scheme. The Home Guarantee Scheme helps certain home buyers secure a home loan with a deposit smaller than 20%, without having to pay lenders mortgage insurance (LMI).
The Home Guarantee Scheme is made up of three separate initiatives:
Applications for one of these schemes can only be made through a participating lender or a mortgage broker acting as an authorised representative of a participating lender.
Yes, you can switch your home loan to Bank Australia from another bank by refinancing. Borrowers refinancing their loan with Bank Australia can choose either a fixed, variable or split rate loan to switch to and can add a redraw facility and/or an offset account to eligible loans.
Bank Australia advises that they require a borrower to pay for lenders mortgage insurance (LMI) when there’s an increased risk associated with the loan in question. They will typically charge LMI if the borrower’s deposit represents less than 20% of the total loan value.
As of April 2025, Bank Australia charges the following fees on its home loan products:
For more information, check the Key Facts Sheet for the loan you’re considering or speak to one of our expert mortgage brokers.
If you want to learn more about Bank Australia home loans, you can use our home loan comparison tool to compare them against a wide range of other loan products from a range of other lenders!
Comparing home loans with us means only being shown home loans you’re eligible to apply for, and having a dedicated team of expert mortgage brokers on-hand to help you with any questions you may have. And if you find a home loan that you think might be appropriate for you, you can apply for it then and there – entirely online, with no physical paperwork!
So, if you’re in the market for a home loan, compare your options today with Compare the Market!
Stephen has more than 30 years of experience in the financial services industry and holds a Certificate IV in Finance and Mortgage Broking. He’s also a member of both the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) and the Mortgage and Finance Association of Australia (MFAA).
Stephen leads our team of Home Loan Specialists, and reviews and contributes to Compare the Market’s banking-relating content to ensure it’s as helpful and empowering as possible for our readers.
