As a customer-owned bank, it doesn’t have any shareholders to pay so it can return its profits to customers and regional communities through competitive interest rates and fees.
This is what sets Newcastle Permanent apart from the big banks, according to its Chief Customer and Product Officer James Cudmore (pictured below).
“Our goal is to help our customers step onto the property ladder and pay their loans off sooner. To do that, we’re continuously working to provide some of the best value home loan products and competitive interest rates in Australia,” Mr Cudmore told Savings.com.au.
“We invest almost $1.5 million annually, to support local communities through sponsorships, employee donations, volunteering and fundraising activities, and our locally based contact centre is available on the phone, online and via web chat to support our customers.”
Newcastle Permanent has more than 300,000 customers and nearly 1,000 staff. As well as home loans, it offers personal loans, savings accounts, term deposits, credit cards, insurance and more.
What home loans does Newcastle Permanent offer?
Newcastle Permanent has a wide selection of home loans for refinancers, owner occupiers, first home buyers, and property investors.
It offers variable and fixed rate home loans, and is one of the very few lenders to offer a 10-year fixed product. Customers usually have the option of paying principal & interest, or interest-only.
See some of Newcastle Permanent’s home loans for owner occupiers in the table 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 | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.49% p.a. | 7.46% p.a. | $2,836 | Principal & Interest | Fixed | $395 | $0 | 80% | |||||||||||||
5.49% p.a. | 7.65% p.a. | $2,836 | Principal & Interest | Fixed | $395 | $0 | 80% | |||||||||||||
5.59% p.a. | 7.94% p.a. | $2,867 | Principal & Interest | Fixed | $395 | $0 | 80% | |||||||||||||
5.59% p.a. | 7.68% p.a. | $2,867 | Principal & Interest | Fixed | $0 | $0 | 80% | |||||||||||||
5.59% p.a. | 7.71% p.a. | $2,867 | Principal & Interest | Fixed | $395 | $0 | 80% | |||||||||||||
5.59% p.a. | 7.15% p.a. | $2,867 | Principal & Interest | Fixed | $395 | $0 | 80% | |||||||||||||
5.59% p.a. | 7.93% p.a. | $2,867 | Principal & Interest | Fixed | $0 | $0 | 80% | |||||||||||||
5.59% p.a. | 7.68% p.a. | $2,867 | Principal & Interest | Fixed | $395 | $0 | 95% | |||||||||||||
5.59% p.a. | 7.48% p.a. | $2,867 | Principal & Interest | Fixed | $395 | $0 | 95% | |||||||||||||
5.59% p.a. | 7.31% p.a. | $2,867 | Principal & Interest | Fixed | $395 | $0 | 80% |
Newcastle Permanent home loan features
Newcastle Permanent's Chief Customer and Product Officer James Cudmore. Image supplied.
Newcastle Permanent offers a broad selection of home loan features across select home loans:
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Additional repayments: You can choose to pay above your minimum repayment to pay off your loan sooner – some loans allow maximum extra repayments of $25,000 per year.
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Flexible repayment options: You can repay your loan monthly, fortnightly or weekly.
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Split loan: Newcastle Permanent allows you to split your loan into both fixed and variable portions.
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Offset account: You can link your home loan to your offset account, helping reduce the interest you need to pay. 100% offset facilities are available.
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Fee-free redraw access: Newcastle Permanent home loans allow you to access any extra repayments you’ve made when you need it.
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Repayment holiday: This mortgage feature, available in some Newcastle Permanent home loans, allows you to take a break from repaying your home loan when you experience financial challenges.
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Reduced product fees: The package products give you access to other Newcastle Permanent products (credit cards, car loans) with $0 annual or application fees.
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Bridging loan: “Our fixed rate Bridging Loan features no annual fees, fee-free online redraw facility and the ability to make both regular and lump sum additional repayments,” CCO James Cudmore said.
“Our goal is to help our customers step onto the property ladder and pay their loans off sooner. To do that, we’re continuously working to provide some of the best value home loan products and competitive interest rates in Australia.”
Newcastle Permanent packaged loans explained
The Premium Plus Package home loan offers a number of extra features.
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Some fees waived: No establishment fee, no redraw fee, and no monthly fee.
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Credit Card: The Value+ credit card has no annual fee.
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Personal loans: Application fees are waived if applying for a personal loan through the package loan.
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Insurance: Get a 5% 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, and in many cases receive up to $2,000 cashback if refinancing.
Mr Cudmore pointed to some of the other benefits of a packaged loan.
“Our package variable home loans provide customers with the ability to link an unlimited number of 100% offset accounts, while our fixed rate mortgages enable customers to make regular additional and extra lump sum repayments up to $25,000 per year,” he said.
What developments is Newcastle Permanent working on?
“Continued digital advancement is a key part of our strategy for the future. We’re always enhancing our Internet and App experiences to provide our customers with more information and control over their finances, with a human touch,” Mr Cudmore told Savings.com.au.
“Our team is currently in the process of making the home loan process easier and more convenient for our customers to not only apply for a loan, but also to manage their mortgage on a daily basis. We’re proud to say that we were one of the first lenders to deliver digital signatures on home loans.”
What are the benefits of customer-owned banking?
“As a mutual building society we have no shareholders to pay. Instead we use our profits to support our customers and the regional communities we operate in, through offering great value for money, and continually enhancing the services and products that we offer,” Mr Cudmore said.
“Our purpose is to be here for good, and our vision is to be Australia’s favourite banking experience, and we’re on our way. For the second year in a row we were recognised in the Forbes World’s Best Banks rankings in 2021, being named as the top Australian owned financial institution.
“And year after year we continue to achieve exceptional customer satisfaction results, scoring over 90% customer satisfaction and a promoter score of 43 last year, with the latter well ahead of the major banks which largely came in below zero.”
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:
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Be above 18 years old
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Be an Australian resident
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Be employed or earning a steady income
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Not have been declared bankrupt
If you’re eligible for a Newcastle Permanent home loan, you may submit your application in your nearest Newcastle brand or by calling (02) 4907 6501. 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:
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Proof of identification such as your passport, Australian drivers licence, birth certificate or Medicare card.
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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.
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Other sources of income like rental income or family tax benefit/pension payments.
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A first home owner grant application form if applicable.
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Details of the property you’re buying.
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Savings account statements.
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Asset and liability documents.
Photo by 'Michael' on Unsplash
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