Newcastle Permanent Fixed Rate Home Loan
Lock in your interest rate and pay your loan off knowing your repayments won’t change.
Rebecca Pike is Finder's senior writer for money. She joined Finder after almost four years writing for business publications in the mortgage and finance industry, including three years as editor of Mortgage Professional Australia. She regularly appears as a money expert on programs like Sunrise and Today, as well as across radio and newspapers. She also holds an ASIC-recognised Tier 1 Generic Knowledge certification.
The Newcastle Permanent Fixed Rate Home Loan allows you to lock in a competitive rate so you know what your repayments will be for up to 5 years. An option for owner occupiers and investors, you can take out this home loan with as little as a 5% deposit.
There are no ongoing fees to worry about, so you know where your money is going. However, there is a fairly high application fee which you should consider.
If you’re looking for a basic no-frills home loan, with no additional ongoing costs, and you want to work towards paying it off quickly, this loan might be the one for you. However, if you are looking for additional flexibility and features, you might want one of Newcastle Permanent’s other options. While you can make up to $25,000 a year in additional repayments towards your loan, you cannot redraw from those funds. This loan also does not offer an offset account.
About this loan
What are the features and benefits of the Newcastle Permanent Fixed Rate Home Loan?
- Maximum loan amount. You can borrow up to 95% of a property's value with this loan, although if you borrow more than 80% you'll need to pay lenders mortgage insurance (LMI).
- Additional repayments. With the Newcastle Permanent Fixed Rate Home Loan, you can make up to $25,000 in extra repayments during the fixed rate period. However, paying your loan off before the fixed rate expires could see you paying break costs.
- Repayment holiday. If you experience financial hardship and you're struggling to meet your mortgage repayments, you can apply for a repayment holiday to pause your repayment commitments for a set period of time.
- Split loan facility. With a split loan option, you can allocate a portion of your home loan to attract a variable interest rate and another portion to attract a fixed interest rate. This gives you the flexibility of a variable rate and the certainty of a fixed rate.
- Portability. The portability feature gives you the flexibility to transfer the home loan with you in the event that you move into a new property.
- Flexible repayment options. Choose from a weekly, fortnightly or monthly repayment schedule.
- Interest-only option. You can opt to pay interest-only repayments for a period. This can be useful for investors trying to maximise their cash flow.
What fees and charges come with this loan?
There are no ongoing account keeping fees to with this loan; however, there are some fees you may have to pay:
- Establishment fee: $595. This fee is for the loan application process and currently only applies to investor loans.
- Break costs: Varies. This is the cost of closing the loan during the fixed rate term and can be quite substantial.
How to apply
If the Newcastle Permanent Fixed Rate Home Loan sounds right for you, click on the green 'Go to site' or 'Enquire now' button and you'll be redirected to Newcastle Permanent directly, or to a form to contact a mortgage broker.
When making an enquiry about this loan, you'll need to provide your personal details. These include your full name, contact number and email address. You'll also need to confirm whether or not you're a member of Newcastle Permanent.
Once you've submitted your enquiry, a home loan expert will be in touch with you within one business day.
When you apply for the Newcastle Permanent Fixed Rate Home Loan, you'll need to provide:
- Personal details. You'll need to disclose your date of birth, residential address and contact details. You'll need to provide a copy of photo ID which clearly shows your signature and photo.
- Employment details. Newcastle Permanent will request two recent payslips that specify your employer's name, the pay period and gross or net income. You may also need to lodge a signed employer consent form.
- Liabilities. You'll need to provide statements for any liabilities or debts that you have, such as credit cards or personal loans.
- Property details. During the application, you'll need to put forward a signed copy of the contract of sale. This should include details such as address, property type, purchase price, and sellers details.