Newcastle Permanent cuts 5-year fixed rates to new lows
Cuts to home loan rates in response to last week’s RBA rate cut continue to flow through, with Newcastle Permanent the latest lender to bring fixed rates below the 2% mark.
Effective today, its Premium Plus Package Fixed Rate Special will offer 1.98% p.a. (3.81% p.a. comparison rate*) on 1-year terms and 1.99% p.a. (3.34% p.a. comparison rate*) on 5-year terms.
The new 5-year rate reflects a cut of more than 100 basis points, and at the time of writing is the lowest rate among comparable owner occupied loans in our database.
Last week, Newcastle Permanent CEO Bernadette Inglis said the move “is a continuation of our commitment to support our customers over the long term and offer some financial certainty during these uncertain times.”
RELATED: Which banks have cut home loan rates following the November RBA rate cut?
Despite the generous cuts to fixed rates, Newcastle Permanent has made clear that its range of variable rate home loans will remain unchanged for the time being.
This has been the case for most lenders following last week’s reduction to the cash rate, with only nine lenders among the 86 we track opting to cut variable rates in line with the RBA.
We’ve included an overview of the new fixed rate home loan below, but if you want to see how they stack up against other offers on the market, be sure to visit our home loan comparison page, where you’ll be able to filter your search by rate and type.
Special Discounted Fixed Rate Home Loan (Owner Occupier, Principal & Interest, LVR <80%)
- 2.28% p.a. 3-year rate (3.78% p.a. comparison rate*)
- Free extra repayments (up to $25,000 p.a.)
- Option to split loan
The Newcastle Permanent Fixed Rate home loan lets you lock in a rate for as many as 10 years, though the most competitive deals are in the 1 to 4 year range. Owner occupiers will be looking at rates as low as 2.08% (4.09% comparison rate*) on 1-year terms, 2.28% (3.94% comparison rate*) for 2 years, and 2.28% (3.78% comparison rate*) for 3 years.
When it comes to paying off your loan, you’ll be able to choose between weekly, fortnightly and monthly repayments. You’ll also be able to make extra contributions, however this is capped at $25,000 per year. What’s more, the loan establishment fee of $595 is currently waived for owner occupiers, and if you’re planning to refinance to this loan from another lender, you’ll receive $2,000 cashback so long as you apply before 30 November 2020.
Fixed Rate Home Loan (Owner Occupier, Principal & Interest, LVR <95%)
- 1.98% p.a. 1-year fixed rate (3.81% p.a. comparison rate*)
- 1.99% p.a. 5-year fixed rate (3.34% p.a. comparison rate*)
- Discounts on other Newcastle Permanent products
Whether you’re looking to lock in a rate for one year or longer, the Premium Plus option from Newcastle Permanent guarantees super low rates. Owner occupiers will be able to take advantage of fixed rates as low as 1.98% p.a. (3.81% p.a. comparison rate*) available on 1-year terms, and 1.99% p.a. (3.34% p.a. comparison rate*) on 5-year terms.
Along with the ability to make free extra repayments (up to $25,000) and split your loan, you’ll also receive a 5% discount on your car insurance and 10% off your home and contents or landlord insurance. There are also discounts on fees if you decide to take out a credit card, personal loan or car loan with Newcastle Permanent. Just keep in mind that this home loan comes with extra charges of its own, including a $395 yearly service fee and a settlement fee (which will vary depending on solicitor costs).
* 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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