- P&N operates under a customer-owned banking model.
- The bank provides customer service across a range of banking interactions.
- Customers can access services through branches, mobile lenders, a Perth-based contact centre and digital channels.
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
P&N's no-frills home loan that comes with a competitive variable interest rate
No ongoing monthly fees
Extra payments permitted (no penalty)
Flexible repayment options - weekly, fortnightly, or monthly
Online redraw facility available
Borrow up to 95% loan-to-value ratio (LVR) including lenders mortgage insurance (LMI) - owner occupiers
Borrow up to 90% LVR including LMI - investors
Offset variable home loan
Comes with a linked 100% offset account
No ongoing monthly or annual fees
Extra payments permitted (no penalty)
Flexible repayment options - weekly, fortnightly, or monthly
Borrow up to 95% LVR including LMI - owner occupiers
Borrow up to 90% LVR including LMI - investors
Fixed rate home loan
Allows borrowers to fix their mortgage from one to five years.
No redraw or offset available
Extra payments up to $25,000 only without penalty during the fixed-rate period
Borrow up to 95% LVR including LMI - owner occupiers
Borrow up to 90% LVR including LMI - investors
P&N home loan interest rates
Explore P&N’s current range of home loan products below.
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
P&N keeps its fee structure relatively simple, with no ongoing fees. However, some upfront and loan-specific fees may apply, including:
- $300 document preparation fee
- $300 switch fee from another P&N bank loan
- No monthly maintenance or annual fees
- 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
First valuation free
Additional valuations at cost to P&N
LMI (required for loans with deposits generally less than 20% plus government fees) provided at cost to P&N
Legal fees at cost to P&N
$150 title consent fee (when applicable)
$250 loan contract variation fee (when there is variation of the loan contract)
$300 loan account switching fee (if switching home loan to a different product)
$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 former 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.
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.
Customer-owned banks are 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
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."
What are the pros and cons of P&N Bank home loans?
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 of P&N Bank home loans
- Competitive interest rates and no ongoing monthly or annual fees, helping keep borrowing costs down.
- As Western Australia's largest customer-owned bank, profits are reinvested into products and services for members rather than paid to shareholders.
- Physical branches are available across Perth and regional WA, including Rockingham, Mandurah and Bunbury, for borrowers who prefer face-to-face service.
- Fast turnaround times and approval processes, based on broker experience.
- Cashback offers are occasionally available to eligible borrowers.
- Extra repayments are allowed, including up to $25,000 during a fixed-rate period.
- Borrow up to 95% loan-to-value ratio (LVR), including lenders mortgage insurance (LMI).
- No mark-up on LMI costs or bank legal fees.
- Equity access home loan options are available.
- Strong reputation for customer service and customer satisfaction.
See also: Home loan cashback offers and deals
Cons of P&N Bank home loans
- Home loans are generally only available to Western Australian residents, making them unsuitable for most interstate borrowers.
- Only one offset account is available per home loan, which may limit flexibility for borrowers who prefer multiple offset accounts.
- Home loan pre-approvals are not currently offered, which may be a drawback for buyers who want approval in principle before starting their property search.
- P&N Bank is no longer a participating lender in the Federal Government's First Home Guarantee Scheme, which may affect some first-home buyers.
- Generally does not offer low-doc or no-doc home loans, limiting options for self-employed borrowers and those who cannot provide standard income documentation.