Bank Australia mortgage products

Product Name

Bank Australia mortgage products

Issuer

Bank Australia

Category

Banking product

Type

Banking

Target

Retail

Certified Since

2016

Certification Symbol

Responsible Investment

Asset Classes

Other

Markets

Australia

Investment Approaches

Other, Other

It Includes

  • Default selected inclusion No specific inclusions

It Excludes

  • Default selected exclusion No specific exclusions

Overview

Bank Australia's mortgage products are socially and environmentally responsible and still competitive relative to the major banks. For example, prospective lending customers are assessed by the bank to ensure they are able to assume their debt obligations without suffering financial hardship, the bank invests 4% of its after tax profits in projects with a positive social and environmental impact, the bank mitigates the social and environmental impacts of its operations and screens potential loans and investments for negative social and environmental effects, for example, excluding loans to the fossil fuel industry.


Description


By obtaining a mortgage with Bank Australia, customers are:
i. Assessed by the bank as able to assume their debt obligations without suffering financial hardship (reflecting this, the bank’s credit quality is class leading, with a loan delinquency rate of 0.2% in 2016, whereas the average of locally owned non-major banks was 0.9%).
ii. Accessing funds which are primarily sourced from other depositors in Bank Australia (an important part of the bank’s stable, customer-owned business model).
iii. Entrusting their repayments to a bank which is run in a responsible manner, for example, by:
o Returning profits to its customer/owners through decreased fees and lower interest rates;
o Ensuring that its products are socially impactful and still competitive relative to the major banks (Canstar estimates that in 2016 the bank’s customers were collectively $33.2 million better off banking with us compared to the major banks);
o Investing 4% of its profits into socially and environmentally positive projects through the Bank Australia Impact Fund (for example, the Bank Australia Conservation Reserve);
o Mitigating the environmental and social impacts of its operations;
o Creating and keeping jobs in Australia; and 
o Screening potential loans and investments with negative social and environmental effects including loans to the fossil fuel industry.

Other products certified by the Responsible Investment Association Australasia (RIAA)

Bank Australia deposit products

Find out more