Newcastle Permanent cuts 0.10% p.a. off variable rate home loan
Newcastle Permanent has cut the interest rate on select variable rate home loans by up to 0.10% p.a., with its Real Deal Home Loan (LVR <80%) dropping to 6.09% p.a. (6.13% p.a. comparison rate*).
A cut of 10 basis points may not sound significant, but it means that the lender’s Real Deal Home Loan beats the average variable rate home loan in the Mozo database by 0.71% p.a. – that can equate to huge savings over the life of the loan.
For example, if you have a loan amount of $400,000 which you’re paying off over 25 years, your monthly repayment would be $2,776 with the average variable rate in our database of 6.80% p.a.†.
If you were to switch to Newcastle Permanent’s new rate of 6.09% p.a., you could save $177 in monthly repayments. That all adds up over the course of a 25-year home loan – the relatively small monthly saving equates to $53,110 over the life of the loan.
Newcastle Permanent is also offering up to $3,000 cashback for those who are applying for a new purchase or refinancing their home loan, though you must apply online to qualify (T&Cs apply).
Here is a closer look at the loan.
Newcastle Permanent Real Deal Home Loan
- 6.09% p.a. variable rate (6.13% p.a. comparison rate*)
- Free extra repayments
- Up to $3,000 cashback
- Redraw fees apply
- No offset account
Newcastle Permanent has just dropped the variable interest rate on its Real Deal Home Loan to a competitive 6.09% p.a. It’s available to those with a maximum loan-to-value ratio (LVR) of 80%, and we like that it allows you to make extra repayments at no cost. This home loan comes with no annual fees, though an upfront establishment fee of $595 applies. A free redraw facility is available when withdrawing online, but fees apply if you redraw at a branch.
To compare this home loan with other options and weigh up whether this offer is right for you, head over to our home loan comparison hub.
† Source: mozo.com.au as at 18 July 2024, average variable rate for owner occupier, principal & interest home loans at $400,000, 80% LVR.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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