businessOwned by: ASX Listed
monetization_onFunded by: Retail deposits and wholesale capital markets
securityLMI Provider: QBE LMI
account_balanceLender type: Bank, Non-major
Up until 2015, Auswide Bank was trading as Wide Bay Australia and was primarily focused on the Queensland market around its headquarters in Bundaberg. Since changing their name and management, they’ve focused more on using mortgage brokers to reach borrowers all over Australia.
They’ve still got the personal service of a small bank but with their plans to expand they’re offering some incredible price discounts to entice people to choose Auswide for their home loan.
How do Auswide’s home loans compare?
They’re great at
- Customer service
- Special interest rates as a limited time only offer
- First home buyers without genuine savings
- Unusual security such as a block of units, serviced apartment, dual key or over 55’s accommodation
- Working with mortgage brokers
- Assessing loans using common sense instead of credit scoring
- High LVR home loans – can lend 95% plus LMI
Coronavirus / COVID-19: Auswide Bank policy changes
Auswide bank has suspended the acceptance of casual employment as an income source effective immediately.
Moreover, home loans requiring Lenders Mortgage Insurance (generally for loans above 80% LVR) will be temporarily embargoed (suspended) for borrowers working in industries directly impacted by COVID-19, for example those working in gymnasiums, beauty salons, tourism and hospitality industries.
Coronavirus / COVID-19: Auswide Bank mortgage relief
Auswide Bank’s customers who have lost their employment, experienced a loss in income or whose business has been financially impacted will have the option to:
- Defer their mortgage repayments (repayment holiday), or
- Convert to interest only payments or reduce their monthly loan repayments for up to 6 months.
If you decide to take a repayment holiday, interest will continue to accrue on your home loan, which is added on top of your home loan balance.
At the end of the support period, your required repayment amount will increase so you repay the total balance over the remaining loan term (including interest and charges added to the balance during the support period).
If you require assistance, please register online via the Auswide Bank website or alternatively call their Support Team on 1300 077 969.
What home loans’ types do they have?
Auswide has a range of loans from their Home Loan Plus, Freedom Package and Line of Credit Loans. However it’s their fixed rate loans that have been most popular in recent times due to a range of specials for 3 year and 5 year fixed rate loans.
They don’t offer low doc loans or other speciality loan types, their focus is mostly on home buyers and to a lesser extend property investors.
RBA Rate Tracker Home Loan
In October 2016, Auswide released its RBA Rate Tracker Home Loan as a way to compete with the major banks on variable rates.
As the name suggests, the interest rate on the mortgage will move up or down by the same percentage as movements in the Reserve Bank of Australia (RBA) rate.
The interest itself isn’t the RBA rate though.
There is a fixed margin on the rate meaning that if the RBA rate were to fall to 0 then you will continue to pay the fixed margin.
The RBA rate tracker applies to new owner-occupied home loans of $150,000 or more for purchase or refinance at a maximum lend of 80% LVR.
You’ll need to have a transaction account held with the bank but the loan comes with a redraw facility and allow you to make additional repayments.
There is a low, upfront establishment fee of $300 and no ongoing monthly service fee.
Tips for applying with Auswide
Any bank that plans to expand rapidly is going to face challenges as it grows. Auswide is no exception.
Since they are offering special interest rates that are only available for a short time, they tend to have big fluctuations in the number of customers applying for a home loan.
What that means for you is that sometimes it may take a little longer to get approved, and you may have some hiccups such as delays or requests for documents that they don’t actually need.
Use Auswide Bank’s home loan application form to prepare for your home loan application.
Note: This is the latest application form as at November 2017. Please refer to Auswide Bank for their most up-to-date document requirements.
Are Auswide safe to borrow from?
Since the stricter lending rules after the GFC in 2007, the introduction of credit licensing in 2010 and higher capital requirements for banks in 2013 to 2016 all banks in Australia are safe to borrow from.
Auswide is a stable bank that has a large deposit base which it can use to fund its home loans. There’s very little risk to you as a borrower.
Auswide client story: Alexey, QLD
- To refinance a home where one borrower was not an owner.
Two people on the home loan with only one on the property title.
Alexey cared for his mother part-time and lived in her home. His mother was unable to work yet still had a mortgage on her property.
Alexey wanted to add himself to her home loan and assist with the mortgage repayments but her bank said no as he was not an owner of the property so had ‘no benefit’.
After approaching several lenders, he found that most wouldn’t consider adding someone as a borrower unless they were the spouse of the property owner.
We spoke to Auswide (then known as Widebay Australia) and they said that Alexey had a benefit as he lived in the home and would eventually inherit it.
They approved the home loan and even gave Alexey and his mother a lower interest rate than the one she was paying on her mortgage.
Compare Auswide to other lenders
Not sure which lender is right for you? Our Home Loan Experts can help!
Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.