Woolworths Money Home Loans

Rates and fees last updated on
Woolworthsmoneylogo

Would you take out a Woolworths Money Home Loan?

It looks like home loans could be coming to a supermarket shelf near you very soon.

Woolworths have reportedly secured a number of trademarks under the ‘Woolworths Money’ brand. This is the strongest signal yet that the supermarket chain is going to follow the footsteps of Coles into the financial services space. The rival grocery retailer has applied for a banking licence with APRA to write loans and take deposits.

Woolworths Money

Woolworths announced this year that their range of Woolworths Money Everyday Credit Cards is getting an overhaul. The Money Everyday spread of products will be migrated over to the Woolworths Money brand in coming months. Woolworths Money General Manager, Dhun Karai said, “Visa will work closely with Woolworths Money to migrate the existing credit card portfolio from MasterCard and HSBC later this year.”

Accounts, loans, cards, insurance and planning

If predictions from industry commentators are correct, Woolworths is likely to offer a range of different financial products and services. As well as credit cards, we could see personal loans, savings and transaction accounts, home loans, insurance and financial planning from Woolworths. There are a number of opportunities for Australia’s largest retailer if they become a registered deposit taking institution. A competitively priced fixed and variable mortgage may strike a chord with budget conscious borrowers. And industry commentators believe Woolworths could rattle the big four banks by capturing some of the Australian savings market — a valuable source of funding for Australian lenders.

Woolworths are following Coles. Coles are following Tesco

Woolworths and Coles are copying the moves of Tesco, an English supermarket chain, and one of the world’s largest retailers. Tesco can deliver savings on products like car insurance by tailoring premiums based on the information it collects about customer’s spending habits. But some experts have raised concerns about one company controlling so much data about Australian consumers. For example, if a Woolworth’s shopper was pregnant and applying for a home loan. Perhaps from her purchasing habits, a company like Woolworths could conclude that her life expenses will increase in the next 6 - 12 months and factor this into their decision to grant her home loan or not.

But there have been positive reactions from industry commentators as well. A competitive market means better deals for Australians. And the practice of incentivising consumer data collection is nothing new. Qantas released an internet browser add-on that earns Qantas Points, and tracks the user’s search patterns. Presumably to on-sell the information to another company, or for internal use. However, the scheme was generally well received by frequent flyer enthusiasts. The concept could have interesting applications for a company that is able to offer credit to purchase the goods and the goods themselves.


Will a Woolworths home loan be worth it?

There are a lot of online and bricks and mortar home loan lenders, and thousands of products for Australians to choose from. Woolworths would need to offer a market leading product (at least to begin with) to make Australians take notice.

The Woolworths brand is so strongly associated with food, it may be difficult for some to make the leap to feeling comfortable about trusting the supermarket with something like a home loan. But, if Woolworths stick to their word and keep prices, “Down. Down.” Why wouldn’t you get a home loan from Woolworths if it was going to save you thousands?

Compare the best home loans here.

Our prediction about Woolworths Money Home Loans

At this point in time, it’s only possible to speculate on the type of home loans Woolworths may offer. Woolworths credit and prepaid cards have a lean towards offering rewards with the Woolworths loyalty program; while Woolworths has positioned its insurance products as low cost. Hopefully Woolworths extend this budget and features stance to their home loan and deposit taking business. You could see a range of no frills home loans or you could see a mixture of fixed and variable loans with and without frills. The distribution system could be interesting too. Imagine a Woolworths Money branch where you could do your banking adjacent to their supermarket and liquor store. However, the trend is towards online banking. This is where consumers can get the best deals. It’s likely that any future products from Woolworths will be backed up with smartphone and tablet applications for easy application and management of loan and accounts.

Was this content helpful to you? No  Yes

Related Posts

This page was last modified on 16 November 2016 at 5:40pm.

Bank of Queensland Fixed Rate Home Loan - 3 Year Fixed Rate Discount Rate $150k+ <80% LVR (Owner Occupier, P&I)

This fixed rate loan includes a special offer for new lending of $150000 with an LVR of 80% or less. Offer extended.

NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier P&I)

A fixed rate package with flexible repayment options. 350K NAB Rewards Points offer available. Terms and conditions apply.

Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤85% ($150K+ Owner Occupier)

Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.

IMB Budget Home Loan - LVR <=90% (Owner Occupier)

Get a competitive rate without features you may not use.

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, read the PDS or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
Ask a question
feedback