Compare Gateway Bank Home Loans & Interest Rates
Customer-owned Gateway Bank comes from humble beginnings but has carved its niche in offering highly competitive interest rates on its home loan products.
- Gateway Bank is a customer-owned bank founded in 1955 as a credit union for CBA and RBA employees.
- Its two main mortgage products are: Low Rate Essentials Home Loan (low-cost) and Premium Package Home Loan (with 100% offset).
- Its Green Home Loan and Green Home Loan Plus offer discounted rates for eligible energy-efficient homes.
- Gateway Bank’s monthly LMI option allows eligible borrowers with less than 20% deposit to pay lenders mortgage insurance in monthly instalments.
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 known for its focus on customer service and for doing things a little differently.
Its ethos is probably best summed up by its tagline: ‘For Your Pocket and Your Planet’. As well as offering a range of banking products (e.g. home loans, car loans, personal loans, savings accounts, term deposits), it also prioritises green initiatives and policies. Here are some examples:
- Gateway Visa Eco Debit Card is made from plant-based material.
- Gateway offers discounted rates for eligible energy-efficient homes (more on that below).
What home loans does Gateway Bank offer?
Gateway Bank’s home loan range is generally centred around its two core products. Additionally, it also offers green home loans to eligible energy-efficient properties.
Low Rate Essentials
Low Rate Essentials is Gateway Bank’s low-cost home loan designed for borrowers prioritising low interest rates and minimal fees over added features like an offset account. Although it has a redraw facility. Key features include:
- $0 establishment fee
- $0 annual or monthly fees
- Up to 95% LVR (LMI for over 80%)
- Redraw facility (variable loans only)
- Unlimited additional repayments
- Split loan option
Premium Package Home Loan
For borrowers who want a 100% offset account, Gateway Bank offers its full-featured Premium Package Home Loan. It’s available in both variable and fixed (1, 2, 3, and 5 year terms) rate options. Key features include:
- $0 establishment fee
- $299 annual fee
- 100% offset account
- Redraw facility (variable loans only)
- Unlimited additional repayments
- Split loan option
Green Home Loan
Gateway Bank’s Green Home Loan rewards borrowers who are building or buying an energy-efficient home, or adding sustainable features to their existing residence with reduced rates.
To be eligible for the discount, the property must have a Residential Efficiency Scorecard rating between 4 and 6.9 Star or have at least three environmental and energy-efficient elements.
Eligible energy-efficient features:
- Solar panels / solar PV systems
- Solar battery storage systems
- Rain / storm water tank
- Double-glaze windows
- Solar hot water system
- 5 Star+ Electric Heating
- External awnings
- Solar pool heating system
- Home insulation
- Energy-efficient LED lights (75% of the property)
- Air conditioning units (at least 6 stars energy rating)
Features of Green Home Loan include:
- $0 establishment fee
- $299 annual fee
- 100% offset account
- Redraw facility (variable loans only)
- Unlimited additional repayments
- Split loan option
Green Home Loan Plus
Green Home Loan Plus is the premium version of Gateway’s Green Home Loan. It’s designed as a packaged green lending product to finance the purchase, construction, or upgrading of a home to a:
- 7 Star NatHERs rating
- 7 Star Residential Efficiency Scorecard, or
- Green Star Designed or Certified home by Green Building Council of Australia (GBCA)
Borrowers looking to refinance their homes with 7 Star certification may also be eligible for this loan.
Green Home Loan Plus comes with bigger rate discounts.
Other lending options available
Gateway Bank is a participating lender in the federal government’s Home Guarantee Scheme.
Compare Gateway Bank 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.85% p.a. | 6.14% p.a. | $2,950 | Principal & Interest | Variable | $299 | $0 | 80% | |||||||||||||
6.04% p.a. | 6.32% p.a. | $3,011 | Principal & Interest | Variable | $299 | $0 | 75% | |||||||||||||
6.38% p.a. | 6.66% p.a. | $3,121 | Principal & Interest | Variable | $299 | $0 | 80% | |||||||||||||
6.24% p.a. | 6.26% p.a. | $3,075 | Principal & Interest | Variable | $0 | $275 | 85% | |||||||||||||
6.50% p.a. | 6.52% p.a. | $3,160 | Principal & Interest | Variable | $0 | $275 | 85% | |||||||||||||
6.64% p.a. | 6.66% p.a. | $3,207 | Principal & Interest | Variable | $0 | $275 | 80% | |||||||||||||
6.38% p.a. | 6.66% p.a. | $3,121 | Principal & Interest | Variable | $299 | $0 | 85% | |||||||||||||
6.64% p.a. | 6.66% p.a. | $2,767 | Interest-only | Variable | $0 | $275 | 80% | |||||||||||||
6.19% p.a. | 6.21% p.a. | $3,059 | Principal & Interest | Variable | $0 | $275 | 80% | |||||||||||||
6.54% p.a. | 6.82% p.a. | $3,174 | Principal & Interest | Variable | $299 | $0 | 85% |
Why choose a home loan with Gateway Bank?
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.
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.
We are also 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 Bank home loan features
Monthly LMI option
Arguably Gateway Bank’s most unique feature is the option for borrowers with less than 20% deposit to pay lenders mortgage insurance (LMI) in monthly instalments until the loan reaches 80% loan-to-value ratio (LVR).
Like many lenders, Gateway Bank requires LMI on loans above 80% LVR. But the difference is, it offers an alternative way to pay for it.
Gateway Bank borrowers with a smaller deposit but good serviceability can 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. Payments cease once the property’s LVR reaches the 80% threshold.
Green home loan pricing
Green Home Loan and Green Home Loan Plus products provide discounted rates for eligible energy-efficient homes. This feature can be attractive for buyers of sustainable homes and incentivises those making environmentally conscious upgrades to their residence.
Human assessment
Unlike many lenders, Gateway says every home loan application that goes through them is assessed by a person rather than relying entirely on automated approval systems.
Redraw facility and offset account
Both Low Rate Essentials and Premium Package loans on variable rates offer redraw facilities. Minimum amount per redraw applies. Online transactions are generally fee-free, while staff-assisted redraws may incur a fee.
Gateway Bank’s packaged home loans offer a 100% offset account.
Split loan option
Gateway Bank allows borrowers to split their loan between fixed and variable portions. This can appeal to those seeking to lock in rate certainty on the fixed part of the loan and access offset on the variable component.
Flexible repayments
Customers can choose to make weekly, fortnightly or monthly repayments. Additionally, unlimited extra repayments are allowed not just on variable but also on fixed loans.
Innovative features and ‘quirky’ deals
[The monthly LMI feature] is quite amazing. It means anyone who’s got a relatively high income and has strong serviceability but not eligible for first homebuyer grants and guarantees can take advantage of it.
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.
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.
Pros of Gateway Bank home loans
- Competitive rates
- Green lending options
- No establishment fee
- Monthly LMI feature
- 100% offset account
- Borrow up to 95% LVR (for eligible customers)
- Unlimited additional repayments (variable and fixed)
Cons of Gateway Bank home loans
- Smaller product range than major banks
- Smaller branch network than major banks
- May not suit those with complex trust structures
How to apply for a Gateway Bank home loan
To apply for a home loan with Gateway Bank, would-be borrowers generally need to meet the following eligibility criteria:
- Be above 18 years old
- Eligible to become a Gateway Bank member
- Has the ability to service the loan repayments
- Have at least 5% deposit (with LMI) or 20% deposit (without LMI)
If you’re eligible for a Gateway Bank mortgage, you can start your home loan application by calling 1300 302 474 or online through its website.
Documents needed
- Valid ID (e.g. driver's licence, passport, Medicare card)
- Income details (e.g. two recent payslips or evidence of income statements)
- Details of savings and assets (e.g. bank statements)
- Details of other loans and liabilities
- A breakdown of living expenses
- Details of the property
Savings.com.au’s two cents
Gateway Bank may not have the scale and the brand recognition of Australia's major banks, but some of its features help it stand out in a crowded home loan market.
Its green lending products are among its biggest drawcards, offering discounted rates for eligible energy-efficient properties. While its monthly LMI option provides an innovative alternative to the traditional upfront or capitalised mortgage insurance model.
The bank also combines competitive rates with flexible features such as redraw, split-rate options, and unlimited extra repayments (even for fixed loans!).
For first home buyers, environmentally conscious borrowers and those who value personalised service, Gateway Bank may be worth considering.