Guide to Greater Bank’s home loans

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on January 20, 2022 Fact Checked
Guide to Greater Bank’s home loans

Established in 1924 as the Newcastle and Hunter River Public Service Starr-Bowkett Building Co-operative Society Limited, 'Greater Bank' rolls off the tongue a little better.

The Society as it was so called at the time, was formed in response to the economic depression, during which home ownership was out of reach for many. Members of the Society bought shares and made weekly contributions, and a lottery would determine which member received interest free home loans.

In 1945, the bank became a building society, opening its first office in Newcastle. More recently, in May 2016 the Greater Building Society changed its name to Greater Bank after receiving approval from prudential regulator APRA.

Throughout a number of name changes in the past 77 years, Greater Bank has retained its same ownership structure, remaining a mutual bank owned by customers, rather than shareholders. With over 270,000 customers and over $8 billion in assets under management, Greater Bank is the sixth-largest customer-owned institution in Australia. With branches located across NSW and South East QLD, Greater Bank says it is fuelled by its passion for ensuring customers continue to feel like people instead of just numbers, for many generations to come.

What home loans does Greater Bank offer?

Greater Bank offers principal and interest (P&I) and interest-only (IO) home loans for both owner-occupiers and investors.

These home loans are available in variable and fixed interest rates under the options of:

  • Great Rate

  • Ultimate

  • Line of Credit

  • Ultimate Investment

  • Great Rate Investment


Check out some of Greater Bank’s home loans for owner occupiers in the table below.

Lender

Fixed
More details

Great Rate Fixed Home Loan (NSW, ACT & QLD only) 1 Year (LVR 90%-95%) (New Customer)

    Variable
    More details

    Great Rate Variable Investment Loan (New Customers) (Principal and Interest)

      Variable
      More details

      Great Rate Variable Investment Loan (Interest Only) (New Customers)

        Fixed
        More details

        Great Rate Fixed Investment Loan (Interest Only) (NSW, ACT & QLD only) 2 Years

          Fixed
          More details

          Great Rate Fixed Home Loan (Interest Only) 3 Years

            Fixed
            More details

            Great Rate Fixed Investment Loan (Principal and Interest) 3 Years (NSW, ACT & QLD only)

              Fixed
              More details

              Great Rate Fixed Investment Loan (Interest Only) (NSW, ACT & QLD only) 3 Years

                Fixed
                More details

                Great Rate Fixed Home Loan (NSW, ACT & QLD only) 4 Years (New Customer)

                  Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of June 7, 2022. View disclaimer.


                  Features of Greater Bank home loans

                  Fee-free

                  Selected home loan products across Greater Bank’s portfolio such as ‘Great Rate’, are free from establishment, monthly and annual fees. 

                  Online redraws

                  Greater Bank offers free redraw facilities available around the clock via online banking.

                  Fast refinancing

                  Greater Bank’s refinancing allows customers to have a home loan refinanced within 72 hours.

                  Repayment holiday

                  Greater Bank offers repayment holidays for customers whose financial circumstances may have changed. This means those suffering financial hardship may be eligible to take a break from making repayments on their home loan.

                  Additional repayments

                  Greater Bank allows customers to make additional repayments to pay off their home loans loan faster. This feature is available fee-free across variable rate loan options. Those with a fixed rate loan can make additional payments during a fixed period on P&I and IO loans up to 5% of the original loan amount before there is any chance that a prepayment fee may apply.

                  Low LVR

                  Greater Bank will lend up to 95% of the property value with lenders mortgage insurance, or 80% without the insurance.

                  How is Greater Bank different from the big four banks?

                  Speaking to Savings.com.au, Greater Bank said the most notable and significant difference between Greater Bank and the ‘big four’, as well as the emerging neobanks, is their fundamental structure.

                  “As a mutual bank, our customers are our owners, not shareholders meaning we don’t need to maximise profits to pay dividends to shareholders,” Greater Bank said.

                  “Our profits are reinvested into the business to provide better value products and services, develop our technological platforms to ensure we continue to service our customers well into the future, and to foster and support the communities in which we operate.

                  “This has long been our competitive advantage.”

                  Applying with Greater Bank

                  The great Australian dream has long been owning your own home. For Greater Bank, this dream lies at the heart of the financial institution and something it says it wants people to achieve sooner rather than later.

                  “Providing customers with a quick turnaround on their home loan application is not only incredibly important, particularly given the current housing market, but a real point of difference for Greater Bank,” Greater Bank said.

                  “While each situation can be different, once we have all the documentation, including valuation, Greater Bank’s median time for approval is approximately two business days - this compares to more than a week for some financial institutions.”

                  Greater Bank doesn’t use brokers - meaning customers can navigate the home loan options when dealing with Greater Bank direct.

                  Pre-approval with Greater Bank

                  Ready to start searching for your new home? By applying online or reaching out to your local Greater Bank branch, a lender will contact you. From there, a Greater Bank lender will be able to let you know how much you can borrow after assessing your income and commitments before offering conditional loan approval - subject to valuation.

                  Am I eligible for a Greater Bank home loan?

                  If you’re looking into applying for a Greater Bank home loan, eligibility requirements that must be met include:

                  • Applicants must have at least a 5% deposit or equity (maximum LVR is 95% with LMI, 80% without).

                  • Applicants must be an Australian citizen or permanent resident.

                  • Applicants must be over the age of 18.

                  • Applicants must have a regular source of income.

                  • Applicants are looking to purchase an eligible property in NSW, QLD or the ACT.

                  How can I refinance with Greater Bank?

                  Greater Bank says customers can experience significant savings by switching from a big four bank to a Greater Bank home loan.

                  “Today, more than 75% of Greater Bank customers are now more than one month in advance on repayments,” Greater Bank said.

                  To get started with refinancing or a new home loan application, you can head straight to Greater Bank’s website or download the app through the App Store on iOS or Google Play on Android. You can also speak to a Greater Bank loan expert on 13 13 86 or drop into your nearest Greater Bank branch.


                  Image by Lynda Hinton via Unsplash.

                  Disclaimers

                  The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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                  Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

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