Like many customer-owned banks, P&N Bank has its origins in a number of smaller credit unions, most notably those serving Police and Nurses in Western Australia - hence, its moniker.
P&N officially became a bank in 2013 offering a considerable branch network in WA with a smaller presence in New South Wales and south-east Queensland through BCU Bank.
It offers a full range of retail banking services including home loans. Here's a rundown:
P&N Bank home loans
P&N offers three home loan products outlined below:
Basic variable home loan
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P&N's no-frills home loan that comes with a competitive variable interest rate
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No ongoing monthly fees
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Extra payments permitted (no penalty)
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Flexible repayment options - weekly, fortnightly, or monthly
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Online redraw facility available
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Borrow up to 95% loan-to-value ratio (LVR) including lenders mortgage insurance (LMI) - owner occupiers
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Borrow up to 90% LVR including LMI - investors
Offset variable home loan
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Comes with a linked 100% offset account
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No ongoing monthly or annual fees
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Extra payments permitted (no penalty)
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Flexible repayment options - weekly, fortnightly, or monthly
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Borrow up to 95% LVR including LMI - owner occupiers
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Borrow up to 90% LVR including LMI - investors
Fixed rate home loan
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Allows borrowers to fix their mortgage from one to five years.
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No redraw or offset available
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Extra payments up to $25,000 only without penalty during the fixed-rate period
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Borrow up to 95% LVR including LMI - owner occupiers
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Borrow up to 90% LVR including LMI - investors
P&N home loan interest rates
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
P&N home loan fees
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$300 document preparation fee
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$300 switch fee from another P&N bank loan
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No monthly maintenance or annual fees
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Fixed-rate loans only - $650 rate lock-in fee and a break cost fee may apply if the fixed-rate loan is paid out before the fixed-rate term
Other fees and charges
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First valuation free
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Additional valuations at cost to P&N
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LMI (required for loans with deposits generally less than 20% plus government fees) provided at cost to P&N
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Legal fees at cost to P&N
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$150 title consent fee (when applicable)
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$250 loan contract variation fee (when there is variation of the loan contract)
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$300 loan account switching fee (if switching home loan to a different product)
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$350 mortgage discharge fee (without settlement)/ $395 (with settlement)
Why choose a P&N Bank home loan?
Like many smaller banks, their customers are also their owners so there is no imperative to make profits for shareholders. Instead, profits are invested back into the bank's products and services.
P&N's chief retail banking officer Mark Smyth said the bank's customers are at the heart of everything.
"Our very purpose is to enrich the lives of our customers and their communities," he told Savings.com.au. "As a customer-owned bank, our customers and owners are one and the same so there's no conflict with shareholders, like the listed banks."
Mark Smyth, P&N Bank chief retail banking officer
This dynamic often sees smaller banks able to offer highly competitive interest rates and relatively low fees. The trade-off can be that there may be fewer staff, older technology, and slower processes - but that's not always the case.
Old-fashioned personalised banking
"Our focus remains on providing a seamless, transparent, and personalised service no matter how our customers choose to bank with us, either visiting our branches, having our mobile lenders come to them, calling our Perth-based contact centre, or engaging with us digitally," Mr Smyth said.
Indeed, P&N Bank has a stellar reputation in Western Australia where its customer feedback has seen it claim consecutive Bank of the Year titles for 2023 and 2024 in Roy Morgan's annual customer satisfaction awards. Its 2024 ranking was based on a 91.6% customer satisfaction score.
The bank has around a dozen branches in WA and while its footprint is WA-focused, it also considers out-of-state applications that have strong WA ties or for existing customers.
"P&N has a rich heritage with essential workers thanks to our policing and nursing roots," Mr Smyth said. "That's why we've created a home loan offer especially for people who work hard every day."
P&N also offers a range of specialist loans, including bridging and construction loans and reverse mortgages.
P&N Bank home loans - Broker review
Perth-based mortgage broker Michael Fairclough of The Loan Company said P&N Bank has become one of his go-to lenders.
"It's especially good for those who want a bank that still has a branch presence but want to steer clear of the big four," Mr Fairclough told Savings.com.au.
"One of their biggest selling points for me is their low, competitive interest rates - and the fact that there are no ongoing monthly or annual fees on their home loans is a real bonus."
Michael Fairclough, The Loan Company
He said P&N is a good option for first homebuyers, with the bank allowing borrowing up to 95% LVR (including LMI) which makes it easier for those with smaller deposits to get into the market.
"I've found their turnaround times to be genuinely impressive," Mr Fairclough said. "In one case, we went from lodgement to formal approval in just two hours - that kind of speed is rare and really appreciated when time is of the essence.
"The onboarding process is also really smooth and straightforward which helps keep stress levels down for my clients."
P&N Bank home loans: Pros and cons
Here are the pros and cons associated with P&N Bank home loans according to Mr Fairclough (as well as a few others to consider):
Pros
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The interest rates are sharp and there are no ongoing fees, which keeps things simple and cost-effective.
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As WA's largest customer-owned bank, they reinvest their profits back into their products and services, and that benefits their members, that is, my clients.
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They still have physical branches for those who like the option of face-to-face service. You'll find them in Perth and regional areas like Rockingham, Mandurah, and Bunbury.
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Turnaround times have been excellent in my experience. The fast approvals have made a big difference for some of my clients.
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They offer cashback deals that can provide a boost to eligible borrowers.
See also: Home loan cashback offers and deals
Other pros to consider
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extra payments allowed (up to $25,000 only during a fixed-rate period)
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can borrow up to 95% LVR (including LMI)
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does not add a mark-up to the cost of LMI or bank legal fees
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also offer equity access home loans
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highly rated customer service
Cons
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Their home loans are only available to WA residents so are not suitable for interstate borrowers.
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They only allow one offset account per home loan which may be a drawback for some clients wanting more flexibility.
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They are not currently offering home loan pre-approvals. This means P&N Bank wouldn't be suitable for those who want to get their home loan pre-approved before going house hunting.
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They're no longer a participating lender in the federal government's First Home Guarantee Scheme, which may be a factor for some first home buyers.
Other cons to consider
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generally doesn't deal in low doc or no doc lending
Main article image by Rachel Claire via Pexels
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