Newcastle Permanent Home Loan Review
Owned by: Customer-owned
Funded by: Almost entirely from retail deposits
LMI Provider: QBE
Lender type: Building Society, Customer-Owned
Newcastle Permanent is the largest Building Society in Australia and is popular with home buyers in the Hunter and Newcastle regions.
NPBS is actually owned by its customers which means that their profits get returned to you as better interest rates and lower fees. This gives them a distinct advantage over the major banks who are always looking for a way to increase shareholder profits.
Unfortunately, they’re barely known outside of their home region and most mortgage brokers aren’t yet accredited with them.
How do Newcastle Permanent’s home loans compare?
They’re great at
- Some of the lowest interest rates in Australia
- Low rates even for 95% home loans
- Refinance and consolidate debt up to 95% of the value of your home
- Financially-strong due to large retail deposits
- 95% investment loans available
- Fixed rate construction loans available
- Assessing loans using common sense instead of credit scoring
- Considering income from Family Tax Benefits A & B
- Considering large acreages (very case by case)
- You can use the Westpac / St George ATM network without any fees
- 60 days free rate lock with fixed rate loans and terms up to 10 years
But they’ve got some drawbacks…
- Unlikely to help people with a bad credit history (existing members may be considered)
- Most of their branches are in and around Newcastle, NSW
- Not many mortgage brokers are accredited with Newcastle Permanent
- No low doc loans, SMSF loans or other niche products
- Depending on how busy they are, they may be slow to assess your application
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Do they lend outside of NSW?
Yes, you can get a loan with Newcastle Permanent even if you’re in other states. We’ve helped people in WA, QLD and VIC without any problems.
That being said, you may find it hard to find a local broker who is accredited with Newcastle Permanent.
What home loans types do they have?
Their Premium Plus Package is better than the professional packages offered by most other lenders as it has good interest rates starting from loans of just $150,000 and tends to have larger discounts for big loan sizes as well. It’s less competitive for loans over $1.5 million where other lenders will negotiate special pricing.
It has pricing tiers from 1 to 4 depending on the size of your loan. However there are often a special offers which puts everyone on the best interest rate no matter your loan size!
Their Real Deal Home Loan has a low rate for the first three years before reverting to a higher interest rate. It’s a basic loan and it doesn’t really compare to NPBS’s Premium Plus Package.
Their Fixed Rate Home Loans are often very competitive for terms of 1 – 5 years. They offer 7 year and 10 year fixed rates but like with many other lenders, the cost of locking in for such a long term usually outweighs the benefits.
Newcastle Permanent client story: Gary & Maria, NSW
Gary and Maria originally got a pre-approval with St George to buy their first home but after much searching they decided they would buy a home and land package instead.
By that time, their pre-approval had expired but instead of reapplying with St George, they felt they could get a better interest rate elsewhere.
NPM offer very competitive rates for so-called ‘vanilla’ customers (low risk) like Gary and Maria.
With more than 20% of the property value as a deposit (they were borrowing around 77% LVR), a good income and a clear credit history, the couple were able to get approved for their construction loan and at a market-leading interest rate.
Compare NPBS to other lenders
Not sure which lender is right for you? Our Home Loan Experts can help!
Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.