Australian Unity Bank's range of home loan products covers all the standard mortgage lending essentials.

The customer-owned bank has a variable rate, a fixed rate, and a package home loan for first time buyers, refinancers, and investors. Its interest rates are generally competitive, while the product features highlight flexibility.

Australian Unity also offers home loans with a linked offset account and mortgage options for those seeking to borrow up to 90% of the total property purchase price (subject to lenders mortgage insurance).

Home Loans Available at Australian Unity

Kickstarter Loan

What is it: A variable rate home loan that features flexible loan terms and repayments and charges $0 ongoing fees.

Suitable for: Borrowers buying their first home or refinancing their mortgage using a no-frills home loan with flexible repayment features.

Features:

• Variable interest rate

• Loan amount: $200,000 - $2 million

• Loan terms: 1-30 years

• Flexible repayment frequency

• Unlimited additional repayments

• Redraw facility (with unlimited redraws)

• Principal and interest (P&I) repayments

Fixed Rate Loan

What is it: A fixed rate home loan, which offers principal and interest (P&I) or interest-only (IO) repayments and a split loan option.

Suitable for: Borrowers seeking a home loan with a fixed interest rate, but also comes with an option to split the loan between fixed and variable rates and allows extra (capped per year) repayments. Note that early loan payout may result in break cost.

Features:

• Fixed interest rate (1, 2, 3, 5 years)

• Loan terms: 1-30 years

• Split loan facility

• Flexible repayment frequency

• Additional repayments up to $10,000/year*

• Principal and interest (P&I) and interest-only (IO) repayments

*Anything above the cap may incur a fee.

Health Wealth Happiness Home Loan Package

What is it: A comprehensive variable rate package home loan that comes with flexible terms, fewer fees, and added features such as a 100% offset account and an option to add a credit card (annual fees waived).

Suitable for: First home buyers or refinancers looking for a flexible home loan with added features that offer convenience and additional savings (from waived fees and interest savings), all for an annual package fee.

Features:

• Available in both variable and fixed rates (split loan option)

• Loan amount: $200,000 - $2.5 million

• Loan terms: 1-30 years

• 100% offset account*

• Redraw facility*

• Flexible repayment frequency

• Unlimited additional repayments**

• Construction loan available (fee applies)

• Principal and interest (P&I) and interest-only (IO) repayments

*Available for loans on variable rates.

**Capped for loans on fixed rates at $10k/yr.

Other features of Australian Unity Home Loans

New lending customers of the bank get a 10% discount on Australian Unity insurance.

Loan top up is also available, subject to assessment and approval.

Australian Unity also provides borrowers in need of a repayment pause a loan repayment holiday, provided that they meet the eligibility requirements (i.e., less than 90% LVR, P&I repayment, loan is used for primary place of residence, etc.).

Note, however, that the repayment pause will be capitalised on the principal balance, and once the short-term break ends (typically three months), repayments will increase to make up for the pause. Further, the loan will still need to be repaid within its original term.

Australian Unity Home Loan Fees

Australian Unity home loan fees vary per product, while some may or may not be charged depending on whether the customer is new or existing and if there is a promotion ongoing.

These are correct at the time of writing and are subject to change.

How to Apply for a Home Loan with Australian Unity

Interested borrowers may apply by filling out the application form provided by Australian Unity Bank on its website. The bank does not operate traditional bank branches.

To be eligible, you must:

• Be at least 18 years old

• Be an Australian citizen or a permanent resident

• Have a stable and verifiable income

• Possess a good credit standing

Though optional, it is recommended that customers seek a conditional pre-approval to get an estimate of their borrowing capacity and assess their current financial situation. The bank says results will be provided in one business day. Note, however, that pre-approval does not guarantee unconditional loan approval.

Australian Unity Bank requires home loan applicants to provide the following details:

• Identification (valid driver's licence or passport)

• Proof of income (two recent payslips for PAYG applicants; two years of financial statements, tax returns, and Notices of Assessments for self-employed applicants)

• Savings (three months of bank statements)

• Liabilities (three months of statements for any debts being consolidated)

• Current rates notice

• Property details

As with most lenders, the approval process varies depending on several factors, including the completeness and complexity of the home loan application. According to Australian Unity, once everything is signed and returned, it usually takes five business days to get an approval.

Please note that Australian Unity has announced plans to transfer its banking operations to Bank Australia by late 2025. This transition may affect the availability of certain products and services. Ensure you stay informed about any changes that may impact your loan application or management.