It’s fair to say Gateway Bank knows banking. It was founded in 1955 as a credit union for employees of the Commonwealth Bank and Reserve Bank of Australia. Today, anyone can bank with Gateway Bank which is noted in the market for its commitment to customer service and for doing things a little differently.
Its ethos is probably best summed up by its tag line: “For Your Pocket and Your Planet”. As well as offering competitive banking products, it also prioritises green and eco-friendly initiatives and policies. Even its Gateway Visa Eco debit cards are made from plant-based materials, not plastic.
Not surprisingly, Gateway Bank offers green home loans plus a range of other home loan products.
Gateway Bank home loans
Gateway offers two mainstream home loan products:
Low Rate Essentials home loan
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redraw facility available (additional repayments withdrawn via online banking only)
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no annual fee
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split loan option (can be split up to two loan accounts without cost)
Premium Package home loan
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annual fee of $299
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redraw facility and up to 10 linked 100% offset accounts (both available on variable-rate loans only)
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one free loan variation annually from loan anniversary date, if required
The table below features Gateway Bank's current home loan offerings:
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
Gateway Bank home loan features
Both loan products offer:
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up to 95% loan-to-value ratio (LVR) borrowing for owner occupiers; 90% LVR for investors
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variable, fixed, or split rate options
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additional extra payments accepted
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flexible loan terms up to 30 years
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no monthly fees
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no valuation fee (for most types of properties)
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fixed rates available for 1, 2, 3, or 5 years
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rate lock option for 90 days on fixed-rate loans only (fees apply)
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participating lender in the federal government’s Home Guarantee Scheme
See also:
Gateway Bank also offers specialist loans for purchasing land, construction loans, reverse mortgages, and line of credit facilities.
Gateway Bank lenders mortgage insurance (LMI) with a difference
Like many lenders, Gateway Bank requires borrowers to take out lenders mortgage insurance (LMI) when borrowing more than 80% of the security property value. However, unlike many other lenders, it offers an alternative way to pay for it.
Gateway Bank was the first lender in Australia to allow borrowers with a smaller deposit, but good serviceability, to pay off their LMI premium monthly until the property’s LVR reaches 80%.
Essentially, it means the LMI cost doesn’t have to be incorporated into the home loan which can see borrowers continue to pay interest on it over the life of the loan. It also doesn’t inflate the loan-to-value ratio as the LMI cost is not included in the loan amount. As well, payments cease once the property’s LVR reaches the 80% threshold.
One drawback is that borrowers will need to demonstrate they can service their home loan and their monthly LMI premium.
Why choose a home loan with Gateway Bank?
As a customer-owned bank, Gateway places great importance on its customer service and exceptional value.
“Our wide range of home loans are competitively priced across both owner occupied and investor products, while our Green Home Loans are consistently among the cheapest rates available in the market,” Gateway Bank’s chief operating officer Zeb Drummond told Savings.com.au.
Gateway Bank chief operating officer
Zeb Drummond
“But while rate is important, we understand there needs to be more than that and we consistently offer one of the fastest turnaround times for a fully assessed conditional approval in the market and are proud that all our home loan approvals are provided by a human and fully assessed, ensuring that we are meeting the needs of our borrowers.”
Gateway’s customer satisfaction scores are consistently well over 80%.
“In recent years, we’re also seeing large numbers of borrowers come to Gateway as they see a strong values alignment with our Pocket and Planet purpose and our Green Home Loan offerings,” Mr Drummond said.
Gateway’s Green home loans offer considerably discounted rates for certified energy efficient homes.
Gateway Bank home loans: Pros and cons
Pros
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customer service priority
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competitive interest rates
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low fees
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highly competitive rates on green home loans
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most property valuations free to borrowers
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loan applications assessed by people, not algorithms
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generally fast loan approval turnaround times
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flexible loan features and options across its home loan products
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choice to pay LMI as a separate monthly payment rather than incorporating it into loan amount
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allows guarantor lending through family pledge loans up to 105% LVR of property value
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participant in federal government’s Home Guarantee Scheme
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prioritises green initiatives and environmentally responsible policies
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works with mortgage brokers
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prepared to consider applications on a case-by-case basis
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offers reverse mortgages
Cons
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few branches for those who prefer in-branch service
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may not be the best lender for self-employed borrowers with limited financial documentation
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not best suited to borrowers with complex trust structures
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unlikely to approve loans to those with poor credit histories
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don’t offer SMSF loans
Gateway Bank home loans: Broker reviews
Aaron Hendrickson, CEO Best Interest Brokers
Mortgage broker Aaron Hendrickson said what stands out with Gateway Bank’s home loans is their competitive interest rates. He singles out investor loans as being particularly well priced in the market, as well as the bank’s green home loans.
He’s also up front that he currently has his own home loans with Gateway.
“You know, as a broker, obviously part of my opportunity I guess is to churn my own loans, but I just can’t beat them at the moment,” he told Savings.com.au.
Mr Hendrickson describes Gateway’s monthly LMI payment option as “a market leading product”.
“It's quite amazing,” he said. “It means anyone who’s got a relatively high income but not eligible for first homebuyer grants and guarantees, who’s got strong serviceability, can take advantage of that. It’s a fantastic product.”
He says Gateway Bank is also prepared to be flexible with applications that don’t immediately tick all their lending criteria boxes.
“We’ve had some pretty quirky deals through them that were outside their policy but they’re willing to listen to reasons or mitigating factors and do stuff outside of policy,” he said.
It can be a benefit of having “humans” assessing home loan applications, as Gateway proclaims.
“Another thing I should mention, which is outside of my space, is that they offer reverse mortgage products which can be a good way to fund certain people in the right circumstances.
“Overall, our business has been very happy with them as a lender. They are good to deal with, great to talk to, and, as I said, [we] get a few quirky deals approved outside margins.”
Aaron Hendrickson, CEO Best Interest Brokers
Scott Vallender, Director Best Interest Brokers
Mr Hendrickson’s colleague Scott Vallender told Savings.com.au that Gateway Bank home loans are very well suited to:
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first homebuyers and other eligible homebuyers under the federal government’s Home Guarantee Scheme
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homebuyers with LVRs less than 70% (with Gateway offering highly competitive interest rates in that space)
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those qualifying for green home loans
"Gateway is a solid, customer-focused lender with competitive rates, flexible features, and policies that suit a wide range of borrowers.
While they may not cater to highly complex scenarios, they shine when it comes to owner-occupiers and first-time buyers.
Their monthly LMI option, responsive service, and consistent assessment process makes them a valuable option in the lending space – and one we’re happy to refer our clients to when it aligns with their needs."
Scott Vallender, Director Best Interest Brokers
Main article image by David McElwee via Pexels
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