Owner Occupier Home Loan: 0.50% off Basic Variable Rate for 3 Years (Currently 5.44% p.a., CR 5.84%) @ Australian Mutual Bank

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LPadawan on 12/03/2025 - 19:22 australianmutual.bank (589 clicks)
Last edited 12/03/2025 - 19:44 by 1 other user

My first post, hope this helps someone!

I have been researching home loan offers after the latest rate cut, and this is the best variable loan rate that I could find.
Plus, zero establishment or ongoing fees, and waived valuation fee, making it pretty much fee free to start a loan (3rd party settlement fees still apply, like they do for any bank).
The rate increases after the first 3 years, but you can refinance by then.

There are lower offers from Bank Australia at 5.13% but they require you to have no gas connection in your home (https://www.ozbargain.com.au/node/887403)

Australian Mutual Bank - Special Offer 3 Year Discounted Basic Variable Rate
Owner Occupier Only
Minimum loan amount: $500,000
Maximum Loan to Valuation Ratio (LVR): 80%
No offset account, but unlimited free redraws.

Offset account is available on their other loan called GumLeaf Home Loan for 30-40 basis points more, depending on your LVR:
https://australianmutual.bank/loans/home-loans/gumleaf-stand…
However at that interest rate there are many other offers in the market.

Related Stores

Australian Mutual Bank

• 

  huey on 12/03/2025 - 19:45

  +1

  Thanks for pointing out Bank Australia at 5.13%, I will be giving them a call tomorrow.

  • 

    TheFatCat on 12/03/2025 - 22:22

    +1

    Deal breaker for me as no cash back for refinance, gonna be 2k for them fees.

  • 

    Vorsprungdurchtech on 13/03/2025 - 08:55

    Just for green homes it appears, not sure what the minimum feature(s) required would be, if solar or battery this may be a great option for many

  • 

    kcome on 13/03/2025 - 10:46

    A huge NO for me when a 5.13% homeloan asking me to get rid of gas and other household changes. It's not $0 cashback, but several thousand dollars upfront cost before refi.

• 

  Wilociraptor on 12/03/2025 - 19:47

  +4

  Minimum of 500k kills it for me. everything else looked great!

  • 

    Elijha on 12/03/2025 - 19:56

    +2

    If your home is valued over 500k, could you get the loan extended to that value and sit the money straight back in an offset?

    • 

      gadgetfreak28 on 12/03/2025 - 20:23

      How do you ask the bank to extend the loan amount? Say you only have $450K owing but the house is worth $600 do you say you're wanting to get some extra cash to do renovations etc?

      • 

        Padawan on 12/03/2025 - 20:41

        Yes, that would work - they should not care, as long as you are within their parameters for LVR and serviceability

        • 

          gadgetfreak28 on 12/03/2025 - 20:42

          @Padawan: Cool. I will give it a go. I was always under the impression that the banks would want to see some quotes and even ask for the proof that work has been completed etc.

          • 

            GossipGoat on 12/03/2025 - 20:48

            +2

            @gadgetfreak28: This happens all the time, its called taking equity out of your house. The bank determines your borrowing capacity by checking your serviceability and also takes into account the value of the house. How much u put in as the deposit determines your LVR. You don't need to make up a lie just say you want to take some equity out.

            • 

              gadgetfreak28 on 12/03/2025 - 20:51

              @GossipGoat: That sounds more promising and in line with what I'd prefer to do. Thanks heaps for your response. Cheers.

              • 

                liam2040 on 12/03/2025 - 21:27

                @gadgetfreak28: Good way to get around the 500k minimum if that is the case … if you're owing say 450k currently, you could borrow the 500, then dump 50k into the loan straight away, if i'm understanding correctly.

• Wiadro on 12/03/2025 - 20:22 Comment score below threshold.
  • 

    loksmack on 12/03/2025 - 20:40

    +1

    Unloan is 5.74%. This one is 5.44%.

• 

  Brisbane1 on 12/03/2025 - 21:28

  -2

  How when and where ?

  • 

    khey on 13/03/2025 - 09:24

    +2

    click click, yesterday, at your home

• 

  prezmex on 18/03/2025 - 17:14

  Real downer is they require to use the bankstatements.com.au and feeding it with the credentials to your bank to pull all the data.
  Not convinced I should do so.

• 

  Lord Ra on 18/03/2025 - 21:44

  I'm with nab, 5.79%.
  One year in. As a noob, I'm really scared to transfer and get stung with something unexpected.

  What are the calculations I need to be doing to understand if this is good or not please?

  • 

    Padawan on 18/03/2025 - 23:21

    +1

    First confirm that you are on a variable rate with NAB. Then checks your discharge costs (basically the cast to close down your loan). It's normally around 300-400 dollars.
    Then you would consider the fees to open a new loan. For this bank and this offer, the opening fees are about as low as you'll ever get on the market. The bank is waiving their opening fees, you'll only have to pay for their legal/conveyancing fees, which is a standard cost - assume about 400 dollars. Unlike settling on a house, you won't need your own conveyancer/solicitor and their related fees, as the ownership of the house is unchanged, only the loan is moving.
    So you'll have about 700-800 fees upfront, how long it takes for you to recoup those fees and start saving based on the reduced interest rate will depend on the size of your loan. Since the rate would be 0.35% cheaper than your current loan, you'll be saving 350 dollars every year for every 100k in your loan, or 3500 dollars/year for a 1mil loan.
    There are also refinance calculators online that help you do the maths.
    Be prepared for a bit of paperwork, as you'll be applying for a new loan.
    Finally, remember this is a discounted rate for the first 3 years, so you should aim to change again at the end of the three years, or you'll be on a higher rate than your current one.

• 

  hambeet on 19/03/2025 - 19:04

  +1

  I looked at this product last night, but when I went to show my partner today it's no longer listed on their website. It's no longer mentioned in their interest rates section, nor can you generate a 'home loan key fact sheet' for it.

  I think it's gone…

• 

  kcome on 20/03/2025 - 20:34

  +1

  feels sad to see this deal gone. i thought this offer is a very competitive rate.

  • 

    Padawan on 21/03/2025 - 08:06

    I agree - if you're looking for a good rate I'd suggest checking ratecity often, once you remove the filter and you show all rates on the market you can find wild cards like this one.

• 

  amisfit on 23/03/2025 - 19:44

  This might have withdrawn early, thought it was end of month, but Page no longer found.