flagFounded: 1903

businessOwned by: Customer-owned

monetization_onFunded by: Almost entirely from retail deposits

securityLMI Provider: QBE

account_balanceLender 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

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

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.


Tip for applying with Newcastle Permanent

Use Newcastle Permanent’s home loan checklist to prepare for your home loan application.

Note: This is the latest home loan checklist as of November 2017. Please refer to Newcastle Permanent for their most up-to-date document requirements.


Newcastle Permanent client story: Gary & Maria, NSW

Goal

Situation

Building their own home.

Background

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.

Solution

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.

  • White

    What are the benefits of applying with a customer-owned bank?

  • Hi White,
    Some of the benefits of getting a home loan with a customer-owned bank include:
    – Lower interest rates, no upfront fees (usually) and low ongoing fees including monthly and account-keeping fees.
    – You become a part owner in the bank and have a say in significant company decisions.
    – You get the same consumer protection as if you were applying a major bank.
    – Code of Practice: Apart from the Banking Act 1959 (regulated by the Australian Prudential Regulatory Authority), customer-owned banks adhere to COBA’s Code of Practice, which sets out ’10 Key Promises To You’ in relation to acting in the best interests of customers (responsible lending) and the local community and environment.
    – Deposits up to $250,000 are covered by an Australian government guarantee.

  • Fran

    Since 95% investment loans are available from Newcastle Permanent, I’m thinking of just going 90%. Investment lending is getting tougher as it is and I don’t want rigid policies or any extra requirements I may need to meet. So what does it take to qualify for a 90% LVR investment loan?

  • Hey Fran,

    Investment lending has indeed been tightened and it has affected all lenders’ policies and Newcastle Permanent is no exception. You may be able to qualify for a 90% investment mortgage if you can meet the following requirements:
    – You have a clean credit history free of any adverse marks.
    – You have a 10% deposit with 5% in genuine savings.
    – You must have a strong income as well as a stable employment history.
    – You must be buying a standard property although some unusual or specialised property types may be okay with a few lenders.

    Please check out the 90% investment loans page to get further clarification on this:
    https://www.homeloanexperts.com.au/investment-loans/90-investment-loans/

  • marty

    My friends said that Newcastle Permanent are good with offering low interest rates and this page confirmed that. But I didn’t know that they are not so good with low doc lending. I am self employed and contracting for around a year and a half. I can’t prove my income fully and my ABN is just over a year old. Any other lenders I can go to?

  • Hey marty,
    Newcastle Permanent don’t have any low doc products so it’s highly unlikely that you can get a mortgage with them without full income evidence. Our mortgage brokers specialise in self employed home loans and we’ve helped with many contractor home loans as well. There are other lenders that can help and applying with the right lender is key especially considering that you don’t have a 2-year old ABN, which most lenders require. Please call 1300 889 743 to discuss your situation and loan needs in detail with a home loan specialist. Or you can simply enquire online and we’ll contact you instead:
    https://www.homeloanexperts.com.au/free-quote/

  • Nancy

    Hi, a friend of mine works at Newcastle and he told me that the lender has dropped their fixed interest rates. What about their variable special rate? Has that dropped too?

  • Hi Nancy,

    Well to be more precise, Newcastle Permanent have recently dropped their fixed rates on residential / owner occupied home loans for the 1-5 loan terms. They dropped their Premium Plus variable rate by a bit before but it seems it will remain unchanged this time around.