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2022-08-12 2:08 pm

Interest rate announcement - 12 August 2022. Bank Australia will increase variable home loan and commercial variable rates in response the RBA’s recent decision to raise the official cash rate. From 18 August 2022, interest rates will increase by 0.50% for variable rate owner-occupier and investor loans, while commercial variable rate loans will also increase by 0.50%. For existing home loan customers, repayment changes will be effective from 1 October 2022. Read more here.

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2022-06-21 5:06 pm
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Basic Home Loan

Our Basic Home Loan is anything but, with a low rate, low fees and feel-good features.

Straightforward home loan for a better planet

You might be starting out or have done this before. Either way, our Basic Home Loan is a new way to look at your property purchasing, refinancing and construction. 

It’s a low rate home loan like you’d expect, without the extras that you just don’t need. You can pay it off early at no cost to you. And a portion of your interest payments funds projects that benefit people and planet.  

Our rates

MOZO People’s Choice 2020
See all reviews
Best variable rate
LVR of <60%
Effective 9 August 2022
Comparison rate
Based on a loan of $150,000 for 25 years Fees and charges may apply
Comparison rate warning
View full rates table

Why choose this loan?

  • Competitive fixed and variable rates
  • Handy redraw
  • Buy, refinance or build
  • Customer-owned bank

Is this product right for you? Find out more

Signature features

"easy process and really personalised service from my Lending Consultant and both loans are at very competitive interest rates"
Rob from NSW
It might be called our Basic Home Loan, but it’s anything but. If you’re a buyer, refinancer or investor looking for a straight-up home loan with extra features, here’s why this one’s for you.

Standard features

This straightforward home loan comes with helpful features to help you manage your loan and potentially pay it off faster.

Low rates and fees

Lower variable rates for larger deposits and your choice of variable, fixed and split rate home loans. You could lock in a fixed rate for 1, 2, 3 and 5 years.

On your terms

Choose terms of 1 to 30 years. Note with Interest Only repayments (only for construction and investment loans) the Interest Only term term is capped at 5 years.

Pay extra and redraw

You can make extra repayments on variable rate loans and access the cash when you need it at no cost with our redraw. Redraw is not available on fixed rate loans, or if you’re making Interest Only repayments.

Flexible repayments

Make P&I (principal and interest) repayments weekly, fortnightly or monthly. And make extra repayments for variable rates anytime, with no early repayment penalty. Cap of $30,000 applies to fixed loans for the term of the fixed rate loan.

Fixed rate lock

With our rate lock you can apply for a fixed interest rate on your home loan and lock in the rate while your home loan settles. Learn about rate lock and whether it’s right for you.

Construction loan

We offer this loan for construction purposes, too. Each year we protect an area equal to the size of the building lots of all the construction loans we finance on our conservation reserve.

Compare loan features

What to expect when you apply

You tell us about your situation, including income and debts – either by phone or online.

Allow about 20 minutes

If it looks good on paper, we offer conditional approval and let you know if we need any documentation.

Allow 3–7 days

Once we verify your credit score and financial position, and conduct a property valuation, you receive formal approval.

Allow up to 10 days

Above: Sarah, Bank Australia customer, gender equity and sustainability advocate

Customer story

Sarah wants a better world

“There are so many things you can do when you’re feeling disempowered. Things that don’t cost money would include switching banks, changing your phone plan, just changing where you shop in general.”

Read more impact stories

Fees, charges and discounts

Here’s what to expect with our Basic Home Loan. Be sure to factor in related costs like stamp duty, legal fees, building reports, and insurance.
What's it for
Home loan establishment fee (existing mortgage*)
Home loan establishment fee (new mortgage*)
Annual package fee
Monthly fee
Redraw fee
1st valuation fee
Construction progress inspection
Discharge fee
$250 + government fees

Insurance disclosures
*Establishment fees do not apply to loan packages

Loan details and key documents

Banking done differently

We’re 100% customer-owned, which means you have voting rights. We don’t pay our execs bonuses, which means more funds are used to support people and the planet. And we’ll never use your money (or anyone’s, for that matter) to fund harmful industries like fossil fuels, live animal exports or nuclear weapons.

Why us

Things you need to know


  • Any information and advice does not take into account your personal needs and financial circumstances and you should consider whether it is appropriate for you and seek any third party advice you need.
  • Before deciding to apply, we provide and recommend you read our Financial Services Guide.
  • All applications are subject to a credit assessment and approval. Terms and conditions apply. All applicable terms and conditions will be included in our loan offer.
  • Additional fees and charges may be payable – all relevant details will be included in our loan offer.
  • Information and interest rates are current as at the date of publication and are subject to change at any time, at the discretion of Bank Australia Limited.
  • This document does not constitute a contract for finance.

Fixed Rate Loans

  • If a Fixed Rate is selected, then that rate may vary from the date of application anytime up until the date of funding, unless a rate lock agreement applies.
  • Mortgage Offset and Redraw are not available on Basic Fixed Rate loans.
  • Additional repayments are capped at $30,000 and cannot be redrawn. Repayments in excess of the cap may be subject to a Break Fee.

*Comparison Rate. The Comparison Rate is based on a loan of $150,000 for 25 years. Fees and charges may be applicable.

IMPORTANT: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Terms and conditions, fees and charges apply. Loans subject to normal lending criteria and approval.

Rates apply to new applications received from 28 July 2022 however are subject to change at anytime.


  1. ^The Basic Home Loan variable interest rate of 3.25%^ p.a. is for Owner Occupiers making Principal and Interest repayments with a Loan to Value (LVR) ratio of less than 60%.
  2. Minimum new borrowings of $10,000 for an Owner Occupied Home Loan or for an Investment Home Loan, and $10,000 in additional borrowings for further advances to existing home loans.
  3. Available to new borrowers who submit their loan application on or after 28 July 2022;
  4. For all our rates including interest rates for Interest Only payments view our Loan Rates.
  5. If a Fixed Rate is selected, then that rate may vary from the date of application anytime up until the date of funding
  6. For construction loans, Bank Australia protects an equivalent amount of land on the Bank Australia Conservation Reserve as is being constructed to help offset the environmental impact of land clearing. Homes constructed on large lots of land such as hobby farms will be offset according to the amount of land occupied by the dwelling.
  7. The Establishment Fee of $595 is debited to the loan balance on funding. Other fees and charges may be payable. Refer to the Loan Fees schedule available from or by calling 132 888 for more details.
  8. Repayment Pause. Loans must be established for a full 12 months and a maximum Loan to Value Ratio of 90% (Family-Pause) or 90% (Eco-Pause) applies. Pausing repayments will result in interest continuing to accrue on the loan, potentially increasing the term of your loan. Full conditions available from Bank Australia.
  9. Redraw is not available on fixed home rate loans, or during the Interest Only period of the loan and the amount available for redraw is governed by the terms set out in your Loan Offer.
  10. Fixed Rate Loans. If a Fixed Rate is selected, then that rate may vary from the date of application anytime up until the date of funding, unless a rate lock agreement applies. Mortgage Offset is capped at $20,000, and Redraw is not available on Basic Fixed Rate loans. Additional repayments are capped at $30,000 for the term of the fixed rate loan, and cannot be redrawn. Repayments in excess of the cap may be subject to a Break Fee. A limit of one mortgage offset account applies to Fixed Rate Loans. Mortgage Offset accounts can be linked to one Fixed Rate Loan only.