- People First Bank provides home loans with competitive interest rates and low fees
- It offers lenders mortgage insurance waivers for certain eligible medical professionals and essential services workers with 10% deposits
- It is one of few banks to allow unlimited extra repayments on a fixed-rate home loan
People First Bank was born through the merger of Heritage Bank and People's Choice Credit Union in March 2023, forming the largest customer-owned bank in Australia.
At the time of writing, it is among the top ten holders of the nation's household deposits and also offers a wide range of home loan options to owner occupiers and investors.
People First 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
People First home loan options
Basic variable home loan
- competitive variable interest rates
- no application fee or monthly admin fees (see more on home loan fees)
- flexible repayments - weekly, fortnightly, or monthly
- redraw facility (minimum redraw $1,000)
- offset account option (monthly admin fee applies - $8 at the time of writing)
- no application fee, settlement fee or monthly fees
Fixed rate home loan
- ability to fix interest rates between one to five years
- redraw facility (offset accounts cannot be linked to fixed loans)
- flexible payment frequency - weekly, fortnightly, or monthly
- rate-lock facility
- split loan option (offset account can be linked to variable-rate portion only)
- unlimited extra repayments permitted (although break fees may apply if the loan is paid out in full early)
People First specialised packages
Some occupations can borrow up to 90% of a property's value and pay no Lenders' Mortgage Insurance (LMI).
These includes eligible essential services workers:
- registered nurse
- fully qualified paramedic
- sworn-in state or federal police officer
and medical professionals:
- dentist
- general practitioner
- pharmacist
- hospital-employed doctor
- medical specialist
- optometrist
- veterinary practitioner
Under the package deals, home loan applicants will still need to meet income requirements. In the case of joint applicants, only one person is required to qualify. The package offers apply to both owner occupier and investor home loans.
Other notable facts about People First home loans
- People First Bank also provides construction home loans
- Participant in the Australian Government 5% Deposit Scheme
- Online applications receive an immediate pre-qualification response to provide information about applicants' borrowing positions before they make an official application
- Home loan specialists are available to guide applicants through the process
Pros & Cons of People First home loans
Pros
- Competitive interest rates: Considerably lower than many major banks with notable discounts for borrowers with LVRs under 80%
- Low fees: Basic home loans come with no monthly fees while offset accounts attract a modest $8 a month fee, relatively low compared to other lenders
- Flexible loan features: Offers offset account option as well as split loan and rate lock capabilities
- Customer-owned bank: Profits are directed back to the bank rather than to shareholders
- Unlimited extra payments while loan is fixed: This is a significant point of difference to other lenders who generally limit any extra payments on fixed loans to $10,000 - $20,000 annually (however, break fees may apply if the loan is paid out in full)
- Offers LMI waivers to certain eligible professions: This can make a considerable difference to the cost of borrowing
- Scores well on customer satisfaction surveys: People First Bank performs well on various customer satisfaction surveys, indicating a commitment to customer service and fair treatment
- Flexible lenders: People First may consider some applications on a case-by-case basis
- Guarantor loans available: Guarantors generally restricted to parents of borrowers with guarantee not covering the entire loan amount
Cons
- Limited physical branches: Although spread through several states, branches may not be easily accessible for those preferring in-branch services
- Mixed reviews on digital services: People First's digital offerings are still being upgraded as a result of the merger and are not as slick as some of the major banks'
- Slower application turnaround in busy periods: Processing applications can be slower in times of high demand than digital lenders and larger banks
- Can require additional documentation for the self-employed: Generally two years of financial statements are required
- May not lend for some property types: Unusual properties can face more restrictions and borrowing limits
Am I eligible for a People First home loan?
To be eligible for a home loan in Australia, you generally need to be:
18 years or older
an Australian citizen or permanent resident
not in a bankruptcy agreement
Documents needed
ID in the form of drivers license, passport, birth certificate, Medicare card, or the likes
Your two most recent pay slips or three months of account statements
Self employed borrowers may need to provide tax returns and/or Business Activity Statements
A completed Living Expenses Assessment and a one month statement from your main transaction accounts
Proof of genuine savings
Proof of other debts, assets, and liabilities
How to apply with People First?
People First offers a four step process to securing a home loan.
Initial meeting
Over the phone or face-to-face meetings are available with People First lending specialists. People First also offers home loan pre-approval.
Submit an application
Fill out an application for the home loan product. A valuation of your property can also be organised during this step if needed.
Once your application has been filled out, you can submit the application for assessment.
Loan approval
The bank's credit department assesses the loan, looking at your ability to repay it taking into account interest, your credit history, and a number of other lending criteria.
Settlement
Once your loan has been approved, you will be notified and given a settlement date.