Compare Newcastle Permanent Home Loans
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- Newcastle Permanent is a member-owned bank based in Newcastle and part of the Newcastle Greater Mutual Group
- It offers a range of home loans catering for owner occupiers and investors
- Its home loan interest rates are generally among the market's lowest, particularly for high loan-to-value ratio loans
Newcastle Permanent forms part of Newcastle Greater Mutual Group after a merger with fellow Hunter-based Greater Bank in March 2023. The two have combined to become the second-largest customer-owned bank in Australia.
Newcastle Permanent is not driven by returning profits to shareholders like many of the bigger banks and, as such, can offer competitive products, including home loans.
Compare Newcastle Permanent Home Loans
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $0 | 80% | |||||||||||||
6.14% p.a. | 6.48% p.a. | $3,043 | Principal & Interest | Variable | $395 | $0 | 80% | |||||||||||||
6.19% p.a. | 6.08% p.a. | $2,579 | Interest-only | Variable | $0 | $0 | 80% | |||||||||||||
6.19% p.a. | 6.23% p.a. | $3,059 | Principal & Interest | Variable | $0 | $595 | 80% | |||||||||||||
6.34% p.a. | 6.68% p.a. | $3,108 | Principal & Interest | Variable | $395 | $0 | 80% | |||||||||||||
6.39% p.a. | 7.98% p.a. | $3,124 | Principal & Interest | Fixed | $395 | $0 | 80% | |||||||||||||
6.39% p.a. | 7.84% p.a. | $3,124 | Principal & Interest | Fixed | $395 | $0 | 80% | |||||||||||||
6.39% p.a. | 7.71% p.a. | $3,124 | Principal & Interest | Fixed | $395 | $0 | 80% | |||||||||||||
6.44% p.a. | 6.34% p.a. | $2,683 | Interest-only | Variable | $0 | $595 | 80% | |||||||||||||
6.49% p.a. | 7.97% p.a. | $3,157 | Principal & Interest | Fixed | $0 | $0 | 80% |
Newcastle Permanent Home Loans
Newcastle Permanent offers a selection of home loans for owner occupiers, first home buyers, refinancers, and property investors.
Real Deal Home Loan
This is the bank's lowest-rate variable home loan. It's features include:
- redraw facility (no offset account offered on this product)
- unlimited additional repayments
- ability to split loan between variable- and fixed-rate components
- option of principal & interest or interest-only repayments
Fixed Rate Home Loan
- one- to five-year fixed rate period
- no offset account or redraw facilities
- up to $25,000 a year in extra repayments
- split loan option
Premium Plus Package Variable Rate
- 100% offset account
- redraw facility
- additional repayments
- split loan option
- package benefits (includes no establishment fee, no redraw fee, no monthly fees)
See also: What is a package home loan?
Premium Plus Package Fixed Rate
- redraw facility (no offset account on fixed rate loans)
- up to $25,000 per year in additional repayments
- package benefits
- split loan option
Newcastle Permanent Packaged Loans Explained
The Premium Plus Package home loan offers a number of extra features.
Some fees waived: No establishment fee, no redraw fee, and no monthly fee
Credit Card: No annual fee on Value+ credit card
Personal loans: Application fees are waived if applying for a personal loan through the package loan
Insurance: Discount on comprehensive car insurance, and 10% off home and contents, and landlord insurance.
Borrowers can also borrow up to 95% of the home’s value. (Information correct at the time of writing.)
"We've been around for around 120 years in one form or another, and we never take for granted the regional connection that we have. "Our profits only go in two places. It either goes back into the community - and we have a range of grants and community programs. We actually spend proportionately more per customer than the major banks do in the areas that we operate. "Or our profit goes back into the business to make the services even better for customers."
Giving back
Newcastle Permanent home loans: Pros & Cons
Pros
- Highly competitive interest rates: Newcastle Permanent's interest rates are regularly among the lowest on the market, particularly for higher loan-to-value ratio (LVR) loans up to 95%
- Flexible lending criteria: Willing to consider applications on a case-by-case basis rather than apply rigid credit scoring
- Participant lender in the Australian Government 5% Deposit Scheme: This covers first home buyers while single parents may be eligible for loans with 2% deposits
- Regular cashback offers: At the time of writing, Newcastle Permanent has offered a long-running cashback incentive to eligible borrowers and refinancers applying for loans online (see more details below)
- Additional repayments: Borrowers on fixed-rate loans can make up to $25,000 a year in extra payments, considerably more than the $10,000 many lenders permit on fixed-rate loans, while those on variable rates can make unlimited extra payments
- Flexible repayment options: Borrowers can repay loans monthly, fortnightly or weekly (may not apply while loan is in fixed-rate period)
- Split loan: Loans can be split into variable- and fixed-rate portions
- Offset accounts: You can link your home loan to your offset account, helping reduce the interest you pay 100% offset facilities are available with Premium Plus package loans
- Bundled products: Packaged loans can see discounts on interest rates, waived fees, and offers on other products such as credit cards, personal loans, and insurance
- Redraw access: Newcastle Permanent home loans allow you to access any extra repayments you’ve made (fee-free under a packaged loan)
- Repayment holiday: This mortgage feature, available on some Newcastle Permanent home loans, allows you to take a break from repaying your home loan when you experience financial challenges
- Rate lock available: You can pay a fee to ensure your fixed home loan rate does not increase while your home loan application is being processed, regardless of cash rate hikes in the interim. If rates go down, you will receive the lower rate
- Bridging loan: Newcastle Permanent offers finance to help you 'bridge the gap' if you have bought a new property before selling your old one
- Profits that go to community ventures: Newcastle Permanent exists to service its customers' financial needs and also support the local community
Newcastle Permanent Cashback Offer
Newcastle Permanent is one of relatively few banks to have a longstanding cashback offer, up to the value of $3,000. It is available for new purchases or refinances.
Two thousand dollars is available for those borrowing up to $450,000, while $3,000 is on offer for those borrowing $500k or more. The maximum LVR allowable is 80%.
Importantly, this excludes internal refinances - including those made from Greater Bank.
The cashback will be paid within 60 days of loan settlement.
Cons
- Limited branch and ATM network: Confined mainly to the Hunter and some other regional New South Wales locations. Will affect borrowers who prefer in-branch services
- Not open to borrowers with poor credit history or requiring low doc loans: Other lenders may be more willing to consider home loan applications in these categories
- Fee on in-branch redraw applications: (Free if redrawing online)
- Mixed reviews on digital platforms: As a regional bank, Newcastle Permanent's app is reliable and functional but may not have all the bells and whistles of a major bank's
- Slower loan approval times: If time is of the essence in getting your loan approved, you may be better applying with another lender
Newcastle Permanent Home Loan Approval Times
Newcastle Permanent says many of its home loans can be unconditionally approved in one to two weeks, sometimes three weeks depending on the complexity of the application. Pre-approval can be quicker.
Generally, loan approvals can be considerably slower than the big banks and digital lenders, who have the ability to approve many mortgage applications within a day.
This is why it's important to seek pre-approval if you can, and have all your documentation correct and ready, limiting back and forth with the bank's credit assessment team.
How to apply for a Newcastle Permanent home loan
Eligibility criteria
Newcastle Permanent has requirements which you need to meet before applying for a mortgage. Generally, you need to:
Be above 18 years old
Be an Australian resident
Be employed or earning a steady income
Not have been declared bankrupt
If you’re eligible for a Newcastle Permanent home loan, you may submit your application in your nearest Newcastle branch. Alternatively, you can hit ‘make an enquiry’ on the relevant home loan page online.
Documents needed
You will be required to provide certain documents when applying for a home loan. Newcastle Permanent will generally need the following:
Proof of identification such as your passport, Australian drivers licence, birth certificate or Medicare card
Proof of income such as recent payslips or a signed letter from your employer. For the self-employed, you’ll need to provide your full personal and company tax returns for the last two financial years
Other sources of income like rental income or family tax benefit/pension payments
A first home owner grant application form if applicable.
Details of the property you’re wanting to purchase
Savings account statements
Asset and liability documents
About Newcastle Permanent
Newcastle Greater Mutual employees more than 1,600 people, with most of its branches situated in the Hunter region as well as other northern New South Wales locations.
Being a customer-owned bank means its customers, by virtue of joining, have an equal shareholding of the bank and can attend Annual General Meetings. Unlike an ASX or foreign-listed bank, Newcastle Permanent doesn’t have any shareholders to pay so it can return its profits to customers and regional communities through competitive interest rates and fees.
Hear more from Newcastle Permanent's chief customer officer James Cudmore speaking on the Savings Tip Jar podcast: