BCU Bank customer-owners have access to the bank's range of home loans tailored to various borrowing needs, from buying their first home, refinancing, to property investing.

BCU home loan rates are generally competitive, offering both variable and fixed options or a mix of both (i.e., split loan). Aside from interest rates, customers have noted the absence of ongoing fees and flexible features of the bank's home loan products.

The member-owned bank also offers mortgages with a redraw facility and a 100% offset account. Borrowers can also make extra repayments to pay off their loans faster without incurring penalties; those on fixed rates may have an annual cap.

BCU Bank's commitment to personalised service and community-focused banking has also been highlighted as a strength. The bank provides its customers with local financial advisors, resource materials, and digital tools to assist them in navigating their home loan and overall financial journey.

Note, however, that as with any product and service, customer experiences vary.

Home Loans Available at BCU Bank

OMG Home Loan

What is it: A no-frills residential home loan with zero ongoing fees and a variable interest rate

Suitable for: Owner occupiers looking for a basic variable rate home loan with flexible repayment features like the ability to make additional repayments and redraw funds. Not suitable for those seeking a home loan with a 100% offset account.

Features:

• Variable interest rate

• Loan amount: $20,000 - $5,000,000

• Loan terms: 5-30 years

• Up to 95% LVR (LMI applies)

• Redraw facility

• Flexible repayment frequency

• Unlimited additional repayment

• No ongoing fees

• Principal and interest (P&I) repayments

Offset Home Loan

What is it: A variable rate home loan secured for residential property, with a redraw and an option to link a 100% offset account. It also comes with a tiered interest rate feature, which charges a lower rate on lower borrowings.

Suitable for: Borrowers seeking a variable rate loan for the purchase or refinance of an owner occupied property and want the added features of a mortgage with an offset account.

Features:

• Variable interest rate

• Loan amount: $20,000 - $5,000,000

• Loan terms: 5-30 years

• Up to 95% LVR (LMI applies)

• 100% offset account

• Redraw facility

• Flexible repayment frequency

• Unlimited additional repayment

• No ongoing fees

• Principal and interest (P&I) repayments

Fixed Rate Home Loan

What is it: A residential home loan with a fixed rate payable between terms of 1 and 5 years.

Suitable for: Borrowers purchasing or refinancing a residential property they intend to reside in using a home loan with the same repayments during its fixed term.

Features:

• Fixed interest rate (1-5 years)

• Loan amount: $20,000 - $5,000,000

• Loan term: 8-30 years

• Up to 95% LVR (LMI applies)

• Flexible repayment frequency

• Extra repayments up to $25,000 during the fixed period

• No ongoing fees

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

Investment Home Loans

Each above-mentioned owner occupier home loan has a counterpart available for investors. Features are generally the same, except for the 90% LVR cap and the interest-only option availability for all investor loans.

BCU Bank Home Loan Fees

While BCU Bank doesn't charge loan establishment and ongoing fees, some charges may apply.

• Document preparation fee: $300

• Valuation fee: First is free; additional at cost

• Loan account switching fee: $300

• Construction progress fee*: $50/drawdown

• Late payment fee: $5

• Dishonour fee: $6

Additional fees may be charged, depending on the product.

Fees are correct at the time of writing.

*For construction loans only

How to Apply for a Home Loan with BCU Bank

To apply, interested borrowers can book an appointment over the phone, via video call, or in person with a BCU Bank home lender. The bank's mobile lending team can also go to their customers' homes or workplaces, if they prefer.

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

• Meet the bank's credit assessment requirements

BCU Bank requires the following information and supporting documents:

• Proof of identification - passport, driver's licence, or other primary photo ID

• Employment details - contact details of current employer and previous employer, if current is less than two years

• Income details - recent payslips for employed; tax assessments for self-employed)

• List of assets - savings accounts, properties, investments, etc.

• List of liabilities - other existing debts

• Ongoing expenses - rent, food, medical costs, etc.

As with most lenders, the approval process varies depending on several factors, including the completeness and complexity of the home loan application.

According to BCU, pre-approval may be provided within 24 to 48 hours. Meanwhile, the processing of more complex applications, where unconditional approval or a valuation of property is required, can take between five to seven days.