Newcastle Permanent proves customer-owned lenders do it better

Another year has passed, and Mozo Experts Choice award winner Newcastle Permanent has once again impressed, providing better products, customer experiences and community benefits than the big four banks, according to its 2017-18 annual results.

The customer-owned building society has achieved a $43.8 million net profit, up 12.4% on the last year, which could be in response to the results from the Banking Royal Commission.  

“Amid the background of the ongoing Financial Services Royal Commission, and in a year of unprecedented regulatory complexity, we have focussed on enhanced efficiency and creating customer value,” said Newcastle Permanent CEO, Terry Millett.

The Hunter-based lender has achieved customer satisfaction of 93%, according to Roy Morgan research, making them the highest ranked financial institution in Australia in June 2018.

“We’re also one of the most heavily awarded institutions in the retail banking industry, regularly outperforming the major banks with recognition for excellence,” said Millett.

A more recent achievement comes the title of 2018 Home Lender of the Year in the Mozo Experts Choice Awards. Along with taking out the top gong, the provider also won awards across a number of categories.

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One reason for Newcastle Permanents continuing success is down to the competitive interest rates it offers over a range of their home loans.

To put them to the test, we used Mozo’s home loan repayments calculator to see how much you could save by switching to one of Newcastle Permanents great home loan rates.

If you were borrowing $300,000 over 30 years on the average variable loan in Mozo’s database of 4.37%, you’d pay $1,497 in monthly repayments.

However, if you switched to the Newcastle Permanent Variable Home Loan Premium Plus Package boasting the low rate of 3.72%, you’d pay $1,384, which is a monthly saving of $113.

In a year, that’s an extra $1,356 to pad your back pocket.

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Alongside it’s competitive home loan offerings, Millett has attributed the building society's success is its focus on its customers.

“At Newcastle Permanent, our focus is only on our customers, not shareholders, ensuring we seek to give out customers the best experience available in the industry,” he said.

“Our profits are 100% retained in the business to benefit our customers and community, this year we generates an estimated $102.2 million in customer value.”

If you’re thinking of making the switch to Newcastle Permanent and are interested in checking out their range of home loan products, head to their dedicated page. Or for more options, Mozo’s home loan comparison tool can help you compare competitive rates from a scope of different lenders.