- Bank Australia is a customer-owned bank operating under a Responsible Banking Policy.
- The bank offers three core home loans: Basic Home Loan (no-frills, low-cost), Offset Home Loan (with 100% offset), Clean Energy Home Loan (for energy-efficient homes)
- Eligible borrowers buying, building or renovating energy-efficient homes may qualify for discounted rates.
- Parental Pause and Eco Pause allow eligible borrowers to temporarily pause or reduce repayments.
Bank Australia was first established in 1957 as the CSIRO Co-operative Credit Society and became Australia’s first customer-owned bank in 2011.
Bank Australia and Qudos Bank merger
On 1 July 2025, Bank Australia merged with fellow customer-owned Qudos Bank, thus creating one of the country’s largest customer-owned banks and, in their words, ‘Australia’s leading purpose driven bank’.
The merged organisation serves around 300,000 customers nationwide, has total assets approaching $20 billion and employs nearly 900 staff.
Both brands continue to operate, while customers benefit from an expanded branch network through the merged entity.
Bank Australia offers a range of products including home loans, personal loans, car loans, savings accounts, term deposits, credit cards, insurance and more.
It currently ranks as the country's fourth-largest customer-owned bank.
What home loans does Bank Australia offer?
Bank Australia currently offers three main home loan products.
Basic Home Loan
Basic Home Loan is Bank Australia’s low-fee option aimed at borrowers seeking a straightforward mortgage without the frills and associated package fees. Key features include:
- Variable and fixed rate options
- $0 annual fee
- $0 establishment fee
- Fee-free redraw facility (variable loans only)
- Unlimited extra repayments for variable loans
- Up to $30,000 extra repayments for fixed loans
- Access to Parental Pause and Eco Pause features
Offset Home Loan
Previously known as Premium Home Loan Package, Offset Home Loan is Bank Australia’s full-featured packaged product with 100% offset account for an annual fee of $199 (at the time of writing). Key features include:
- Variable and fixed rate options
- $0 establishment fee
- 100% offset account with no monthly account keeping fee
- Fee-free redraw facility (variable loans only)
- Unlimited extra repayments for variable loans
- Up to $30,000 extra repayments for fixed loans
- Access to Parental Pause and Eco Pause features
Clean Energy Home Loan
Clean Energy Home Loan is Bank Australia’s flagship green lending product that incentivises borrowers who build, buy or renovate energy-efficient homes. Borrowers can get reduced interest rates for a set period if they meet specific requirements.
It is available in two forms:
- New Build – for buying or building a new green, all electric property
- Renovate – for energy-efficient updates to an established home
Key features include:
- Discounted variable rates for five years
- Discounted fixed rates for three years
- Variable and fixed rate options
- $0 establishment fee
- 100% offset account with no monthly account keeping fee
- Fee-free redraw facility (variable loans only)
- Unlimited extra repayments for variable loans
- Up to $30,000 extra repayments for fixed loans
Compare Bank Australia home loan interest rates
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.88% p.a. | 6.21% p.a. | $2,959 | Principal & Interest | Variable | $350 | $0 | 90% | |||||||||||||
5.98% p.a. | 6.25% p.a. | $2,991 | Principal & Interest | Variable | $350 | $0 | 90% | |||||||||||||
6.04% p.a. | 6.34% p.a. | $3,011 | Principal & Interest | Variable | $350 | $0 | 90% | |||||||||||||
6.13% p.a. | 6.13% p.a. | $3,040 | Principal & Interest | Variable | $0 | $0 | 60% | |||||||||||||
6.13% p.a. | 6.13% p.a. | $3,040 | Principal & Interest | Variable | $0 | $0 | 70% | |||||||||||||
6.13% p.a. | 6.32% p.a. | $3,040 | Principal & Interest | Variable | $199 | $0 | 60% | |||||||||||||
6.13% p.a. | 6.32% p.a. | $3,040 | Principal & Interest | Variable | $199 | $0 | 70% | |||||||||||||
6.14% p.a. | 6.14% p.a. | $3,043 | Principal & Interest | Variable | $0 | $0 | 80% | |||||||||||||
6.14% p.a. | 6.38% p.a. | $3,043 | Principal & Interest | Variable | $350 | $0 | 90% | |||||||||||||
6.18% p.a. | 6.37% p.a. | $3,056 | Principal & Interest | Variable | $199 | $0 | 80% |
Bank Australia home loan features
Parental Pause
Bank Australia’s Parental Pause feature is effectively a mortgage holiday that allows eligible new parents to pause their home loan repayments for three months or halve them for up to six months.
Eco Pause
Another unique feature of Bank Australia home loans, Eco Pause allows eligible customers to temporarily take a break on their repayments while undertaking eligible green upgrades such as solar panel installation, home electrification and water-saving improvements.
Redraw facility and offset account
Bank Australia offers a redraw facility to variable-rate home loan customers. This feature is not available to borrowers on fixed-rate loans and those making interest-only (IO) repayments.
A 100% offset account is available on both Offset Home Loan and Clean Energy Home Loan.
Flexible repayments
Bank Australia home loan customers can choose to make weekly, fortnightly or monthly repayments.
Unlimited extra repayments are allowed for variable home loans, while extra repayments on fixed loans are capped at $30,000 for the whole term.
Bank Australia’s ethical and environmental initiatives
Bank Australia believes that your choice of bank could help change the world, and that together with its customers, it’s creating a world where people and the planet thrive.
“Bank Australia is the bank for people who care about people and the planet and want to align their banking with their values, but also don’t want to compromise on products and services,” a Bank Australia spokesperson told Savings.com.au.
“As a customer-owned bank, we put our customers at the centre of everything we do.
“We listen to the issues that are most important to them, like climate change and conservation, and use their money to have a positive impact.”
The bank claims it can ‘do things differently to your typical bank’ thanks to its B Corporation credentials.
B Corp certification essentially means a business meets high standards of social and environmental performance, accountability and transparency.
The ‘clean money promise’ explained
Bank Australia’s ‘clean money promise’ is not to use its customers’ money for harm. According to the bank, it will never invest in industries such as:
- Fossil fuels
- Gambling
- Tobacco
- Live animal exports
- Intensive animal farming
- Arms and weapons manufacturing
“Instead, we seek to invest in affordable and sustainable housing and community renewable energy,” the spokesperson said.
Using money as a force for good
Heavily involved in social and environmental issues, Bank Australia has committed billions of dollars to impact lending and investments that support people, communities and the environment. As at June 2025, the bank reported $2.8 billion in impact assets.
It was also the first Australian bank to join the Global Alliance for Banking on Values (GABV).
“We believe that a truly responsible bank can make society better by empowering people and organisations to use their money as a force for good,” the bank spokesperson said.
As part of its B Corp credentials, Bank Australia does not extend bonuses to its executives.
“We also don’t give our executives bonuses, are carbon neutral, and own a conservation reserve together with our customers.”
Each year, Bank Australia releases an Impact Report outlining what share of its liquidity portfolio is in green, social and sustainability bonds as well as the types of projects these investments finance, such as light rail and transport, wind and solar farms, and low-carbon buildings.
Pros of Bank Australia home loans
- Clean Energy Home Loan offers eligible borrowers discounted rates for up to three or five years
- Repayment pause through Eco Pause for borrowers undertaking green home upgrades
- Repayment pause or reduced repayments through Parental Pause for new parents
- 100% offset account with no monthly account keeping fees
- Redraw facility
- Ethical banking
Cons of Bank Australia home loans
- Smaller product range than major banks
- Smaller branch network than major banks
- Green loan eligibility requirements can be strict (e.g. all-electric)
- Extra repayments on fixed loans capped at $30,000 for the whole term
How to apply for a Bank Australia home loan
To apply for a home loan with Bank Australia, would-be borrowers generally need to meet the following eligibility criteria:
- Be above 18 years old
- Be a citizen or a permanent resident of Australia
- Be employed or earning a regular income
- Have a good credit history for the past five years
If you’re eligible for a Bank Australia mortgage, you can start your home loan application online through its website.
Documents needed
- Valid ID (e.g. driver's licence, passport, Medicare card)
- Income and employment details (e.g. recent payslips or notice of tax assessment)
- Details of savings and assets (e.g. bank statements)
- Details of other loans and liabilities
- A breakdown of living expenses
Savings.com.au’s two cents
Bank Australia has made it clear who it is, what it does and why it does what it does.
Its customer-owned structure and focus on ethical banking help set it apart from many other banks and lenders, making it an option worth considering for borrowers who want their home loan to align with environmental and social values without sacrificing core banking features.
If you’re building or buying an energy-efficient home, or looking to make sustainable upgrades to your residence, Bank Australia may be worth exploring. After all, those discounted rates (if you’re eligible ) may help you out while you support more sustainable housing choices.