It’s vital to remember that there is no assurance that a loan will be approved when applying for a mortgage loan in Australia because many considerations and procedures are involved.
However, some Australian banks and lenders have simplified their processes and might provide borrowers with reasonably easy options. We’ll discuss banks that give mortgage loans easily in Australia in this article, along with important aspects and concerns that may influence loan accessibility.
Have you seen Banks That Give Mortgage Loans Easily In Canada 2023?
Banks That Give Mortgage Loans Easily In Australia
Below are lists of banks that give mortgage loans easily in Australia:
Due to its selection of excellent value home loans, Bendigo Bank was named Home Lender of 2023. With variable rates starting at 5.47% p.a. (5.62% p.a. comparative rate*) for owner occupiers with an LVR below 90%, the Express Home Loan earned a Low-Cost Home Loan award. This loan has many additional advantages, such as the freedom to make free extra repayments and the option to reclaim those repayments through a redraw program.
Additionally, it has an offset account that you can use to reduce the interest you pay on your loan. Budgeting for the $250 settlement cost and the $10 monthly service charge is nevertheless crucial.
For borrowers with an LVR of 70% or less, the Variable Home Loan 70 from online lender loans.com offers a competitive 5.60% p.a. variable rate (5.62% p.a. comparable rate). This loan includes additional repayment options as well as free redraws. However, you must increase your home loan interest rate by 0.10% yearly if you want an offset account. Although this loan has no application fees, you should pay a $300 valuation fee and a $300 settlement fee.
For borrowers with a 40% deposit, Ubank offers exceptional features and a competitive variable rate starting at 5.74% p.a. (5.76% p.a. comparative rate*). It includes free additional repayments as well as redraw capabilities. Since the maximum loan amount is $5 million, this loan should work for most budgets. Two fees are associated with this loan: a $250 upfront settlement fee and a $300 discharge fee.
4. Macquarie Bank
Macquarie Bank, which had won in the previous three years, outperformed its competitors in the crucial turnaround times category, online platform and services, and brand trust, taking the top rank among brokers in Australia.
Although it dropped out of the top spot in a few categories (BDM assistance, communications, and product range), Macquarie Bank’s overall performance was strong enough to support one of Australia’s largest banks in winning the top spot. By far, brokers’ top choice bank for clients who were property investors was Macquarie Bank.
Bankwest won more silvers than any other bank in MPA’s 2023 Broker on Banks survey—six this year versus four in 2022. However, Bankwest did win two gold awards, one for BDM support and one for commission structure. In reality, over the previous four years, Bankwest has won the competition for commission structure.
Bankwest also came close to winning gold for its selection of products. Seeing the Perth Bank win bronze in this category was quite a surprise, given the overwhelming accolades for its online platform. However, it is possible that Bankwest’s end-to-end digital home loan platform, created mainly with brokers’ input, will get more attention.
Additionally, Bankwest improved its standing as a first-time purchase choice in communications, moving from bronze to silver.
Despite coming in third place overall, CommBank took home five more gold medals than Macquarie Bank and Bankwest in the survey. The biggest bank in Australia dropped to third after finishing ninth in the category for online platforms and services.
With a fourth-place performance in the brand trust area, CommBank also underperformed. This year’s top objective for brokers was diversification, so CommBank finished as a force to be reckoned with, winning golds for communications, credit policy, interest rates, and product selection.
For first-time property buyers and foreign non-residents, CommBank was also the bank brokers favored the most. Furthermore, it was the first of the Big Four to launch a greenhouse loan for properties that adhere to specified environmental standards.
7. ING Bank Australia Limited
The most significant direct savings bank operating in Australia is ING Bank, a subsidiary of the international Dutch bank ING Group.
It offers consumer and corporate banking services along with numerous insurance products, superannuation, and mortgages.
Additionally, ING offers a complimentary extra repayment option called “Mortgage Simplifier,” which makes it simple for customers to withdraw money. Because there are no yearly or transaction costs with an online-only lender, you could be able to pay off your loan sooner.
Use the online calculators ING provided or live chat with one of their banking consultants to compare home ownership, refinance, and investment loans.
8. National Australia Bank (NAB) Limited
NAB provides comparable personal and business banking services to other borrowers. The Defense Home Ownership Assistance Scheme (DHOAS) is one of the earliest programs offered in the nation, nevertheless, by this organization.
Members of the Australian Defence Force now have access to discounted home loan products and professional mortgage advice.
Furthermore, NAB provides a robust online platform that gives customers access to several tools for calculating repayments and home equity and choosing the best loan for their financial circumstances.
NAB’s primary service region is Australia, which has 1,590 branches; however, it also caters to New Zealand and Asia customers.
9. Suncorp Metaway Bank
One of the most significant Australian mortgage lenders and providers of general insurance, Suncorp-Metway has its main office in Brisbane. In New Zealand, it also offers banking, wealth management, and superannuation services.
The bank’s “Deposit KickStart” program helps first-time homebuyers by enabling them to leverage the equity in a guarantor’s current house to meet mortgage requirements.
Like most of the large lenders on this list, Suncorp Bank offers a wide range of loan calculators for refinancing, calculating stamp duty, and comparing house loans.
10. HSBC Bank
As a subsidiary of HSBC Holdings plc in London, HSBC Bank Australia Limited is Australia’s most significant foreign financial institution. HSBC Australia, established in 1985 and headquartered in Sydney, offers local clients personal banking, cash management, payment services, financial forwarding, and trade financing.
This bank also provides versatile options for house loans, allowing customers to combine different products to receive cheaper interest rates. You can utilize the user-friendly online calculators provided by HSBC to evaluate various owner-occupied and investor loan options.
For instance, HSBC offers an entire Home Value Loan program with unlimited free extra payments and no recurring monthly service charges.
Loan Eligibility for Banks That Give Mortgage Loans Easily In Australia
Banks evaluate several eligibility factors when a borrower applies for a mortgage loan. These frequently consist of the following:
- Credit history: To measure your creditworthiness, lenders look at your credit score and credit history. Your chances of getting a loan are increased by having good credit.
- Income stability: A consistent income source demonstrates your ability to repay the loan. Documents proving work and income, like paystubs or tax returns, may be required by banks.
- Employment: Banks favor borrowers with a history of stable jobs. Those who work for themselves could have to produce more proof of their income.
- Loan-to-Value Ratio (LVR): Lenders determine the LVR by comparing the loan amount to the property’s value. Generally, loans are more likely to be approved when LVRs are lower.
- Actual savings: Many banks demand that borrowers present real funds to demonstrate their ability to manage their money and make deposits.
Frequently Asked Questions
In Australia, is it simple to obtain a mortgage?
In truth, before you can speak with a lender in Australia about a home loan, you need at least a job offer. Most Australian home buyers can finance 80% of the purchase price. It is possible in some circumstances to borrow up to a maximum of 95%.
Which Australian bank has the most mortgage loans?
The top ten Australian mortgage lenders in 2022 controlled around 92 percent of the country’s mortgage industry. The leading mortgage lenders were the Commonwealth Bank of Australia and Westpac Banking Corporation, with gross mortgage lending of about 6.2 and 5.2 billion Australian dollars, respectively.
Do these banks offer any particular mortgage lending programs for those purchasing their first home?
Yes, various banks in Australia provide unique mortgage loan programs tailored for those who are purchasing their first house. Lower deposit requirements, fewer fees, and competitive interest rates are just a few of the perks offered by these programs. For instance, the First Home Loan Deposit Scheme is provided by Commonwealth Bank, while NAB offers the NAB First Home Loan. I
Are there any mortgage lending options other the traditional banks?
A: Alternative lenders and non-bank institutions are also available in Australia, in addition to the country’s established banks. These lenders could have various lending requirements and might be more lenient in the approval procedure. Pepper Money, Liberty Financial, and Resimac are some Australian non-bank lenders.
What kind of document is usually needed to apply for a mortgage loan?
Banks typically request several documents when you apply for a mortgage loan to determine your eligibility. Commonly needed documents include identification proof (such as a passport or driver’s license), evidence of income (such as paychecks, tax returns, or a contract of employment), bank records to confirm savings and transaction history, proof of assets and liabilities, and details regarding the property being purchased.
How can I increase my likelihood of being granted a mortgage?
You may do several things to increase your chances of being approved for a home loan:
- You may keep your credit score high by making on-time payments on your bills and judicious debt management.
- Save more money for a significant down payment to boost your chances of getting approved by lowering the loan-to-value ratio (LVR).
Some banks in Australia might provide mortgage loans with more straightforward approval procedures. These banks often offer more flexible qualifying requirements and might be open to working with customers with bad credit or unusual financial situations.
Although some people may benefit from this accessibility, it’s crucial to use caution. Banks emphasizing quick approval could charge higher interest rates or fees, resulting in higher long-term costs. Before making a choice, borrowers should carefully review the terms and conditions of any mortgage loan and consider their financial situation.