Overview

flagFounded: 1982

businessOwned by: BNK Banking Corporation Limited ASX Listed

monetization_onFunded by: Retail deposits and wholesale capital markets

securityLMI Provider: Genworth & QBE LMI

account_balanceLender type: Online bank

BNK Bank is not an available lender on our panel. This is a review only.

Introduction to BNK

Established in 1982 as Goldfields Money, they rebranded as BNK bank – a national digital challenger bank in February 2019.

The West Australian based lender merged with mortgage aggregator Finsure late last year and in May, they surpassed $200 million in on-balance sheet loans.

They are planning on serving “Enterprising Australians” like entrepreneurs, self-employed individuals, freelancers, whom BNK Bank has identified as high-value customers who are currently underserviced.


How do BNK Bank’s Home Loan Compare?

Pros

Cons

  • Branches are limited to Western Australia
  • Valuation is not free (Fee is $330).
  • Maximum loan amount is $1,250,000
  • They charge a loan establishment fee of $350.


What type of mortgage products do they offer?

BNK Bank’s rapid application process can help you gain a foothold in the property market sooner, especially if you’re buying your first home.

It specializes in four main areas:

  • Investment loans
  • First home buyers
  • Refinancing
  • Construction loans

They also work with expats who are able to secure loans for up to $1.5 million with 90% PAYG foreign income.

Coronavirus / COVID-19 Policy Changes: CBA

The number one concern for lenders during this COVID-19 crisis is income stability, i.e. can borrowers make their repayments?

For unusual income types such as commission / overtime/ bonus / casual most lenders will question it or ignore it. CBA has not made a formal policy change however anecdotally our brokers have seen them be more conservative with these income types.

If you work in an industry that is significantly (tourism, hospitality, entertainment and retail etc. ) affected by COVID-19 then some lenders will decline your loan. CBA has not made any formal announcement about this yet.

CBA also announced that 100% of overtime income can be used if you are an emergency frontline employee, which includes:

To qualify (requirements):

  • You must be employed on a fulltime basis and be in a frontline role (ie not administrative or office role).
  • The payslip or letter from the employer must evidence that it has met the requirements to use 100%.
  • Where the payslip does not evidence the requirements a separate letter from the employer must be obtained.

For nurses not employed by a hospital or doctors not employed by the hospital and in the Emergency Department, only 80% of the overtime income is used for servicing – no exceptions will be applied.

Tips for Applying with BNK Bank

Use BNK Bank’s home loan application form to prepare for your mortgage application.

Note: This is the latest application form as of October 2019. Please refer to BNK Bank’s website for their most up-to-date document requirements.

Loan Purpose
Loan Type Owner Occupied Investment
Repayment Basis Principal and interest Interest-only (up to 5 years)
Maximum LVR 80%
Loan Term 1 to 35 years
Loan Amount $80,000 to $5,000,000 (subject to LVR and postcode)
Minimum split loan $20,000

Compare BNK Home Loans to other lenders

With so many options of lenders and products out there, choosing the right one is a tough decision without a home loan specialist on your side.

Speak with our mortgage brokers by calling 1300 889 743 or complete our free assessment form.

CBA client story

Ken, VIC

Background

Coming to the end of the fixed period of his CBA home loan, Ken was looking to refinance to a cheaper interest rate.

Earning $125,000 per annum at a private accounting practice, Ken was in a good position to qualify for a great interest rate but he was refinancing at around 90% of the property value.

This meant he would be hit with a large LMI bill, a cost he wanted to avoid.

Solution

After seeking advice from a mortgage broker, he was told that he could qualify for a significant interest discount and a 90% LVR (Loan to Value Ratio) LMI waiver with St George, Westpac and CBA because of his profession and income.

However, St George and Westpac wouldn’t take into account his wife’s income and would only take into account 80% of Ken’s share of the rental income (50%) in an investment property they owned together.

In order to afford the refinance at 90% LVR and avoid LMI, Ken needed to include his wife’s income and his share of the rental income to push his overall assessable income to $150,000.

At $125,000, this income alone wasn’t enough to meet the bank’s serviceability requirements.

CBA was the only lender that would take into account his wife’s income and they would also accept 80% of the rental income for the entire investment property, not just Ken’s share.

Ken was approved for the internal refinance with CBA and qualified for a 4.39% interest rate as a special deal with our brokers, an LMI waiver, and was even able to cash out $52,000 to put towards another investment property.

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