Lock in your interest rate and pay your loan off knowing your repayments won’t change.
A Newcastle Permanent Fixed Rate Home Loan allows you to create a long-term budget for your loan with minimal fees and useful features.
| Product Name | Newcastle Permanent Building Society Fixed Rate Home Loan |
|---|---|
| Interest Rate Type | Fixed |
| Comp Rate^ (p.a.) | |
| Minimum Loan Amount | $10,000 |
| Maximum Loan Amount | $10,000,000 |
| Maximum Loan Term | 30 years |
| Maximum LVR | 80% |
| Mortgage Offset Account | No |
| Loan Redraw Facility | No |
| Split Loan Facility | Yes |
| Fixed Interest Option | Yes |
| Loan Portable | Yes |
| Suitable for Investment | Yes |
| Extra Repayment | Yes |
| Available as equity loan/line of credit | No |
| Repayment Type | Principal & Interest and Interest Only Options |
Pros
- There is $0 ongoing service fee
- You can make extra payments up to $25,000 during the fixed term
Cons
- No redraw during the fixed term
- $595 application fee which is currently waived for all owner-occupier loans
Details to consider about a Newcastle Permanent Fixed Rate Home Loan
The Newcastle Permanent Fixed Rate Home Loan has fixed terms ranging from one to 10 years, and carries no ongoing fees. Once the fixed period ends, the loan reverts to Newcastle Permanent’s Real Options Home Loan. You can also choose to fix your loan for another period of time.
Features of a 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.
Fees
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 for the Newcastle Permanent Fixed Rate Home Loan
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.
Required documentation
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.
Hi Could you please explain why the interest rate trend is not consistent with the RBI trend? Any risk of this bank increasing the rates unexpectedly in the future? I understand it doesn’t affect the Fixed rate customers, but I am wondering if I want to go for a mixed option.
Hi Nesh,
thanks for the question.
Keep in mind that Newcastle Permanent is an Australian lender and bases its decisions on the Australian economy and the RBA, not the RBI. Like all lenders, Newcastle Permanent bases its decisions not only on the RBA but also on the other costs of funding. Unfortunately as we don’t represent Newcastle Permanent ourselves we cannot say for certain what they will do with their rates in the future.
I hope this helps,
Marc.
My partner and I currently have an IO loan of $680K. We would like to refinance to a fixed rate for initially 3yrs. The issue we have is that both of our incomes have decreased over the past few years. I earn payee package of $67,000 and my partner earns approx $50,000 and sub contracts. We also have 2 dependants. Small credit card limit and $600/mth car loan!
Would we have any chance of qualifying for this amount?
Thanks
Hi Bernie,
Thanks for your enquiry.
Please note that lenders have different eligibility criteria for fixed rate home loans but ultimately the lender will assess your ability to service the loan by reviewing your income, assets and any other existing debts.
You can compare a range of three-year fixed rate home loans on this page and you might also be interested to use our borrowing capacity calculator on this page, given that your combined income has changed.
Additionally, you can read more about the refinancing process here and understand the costs involved when refinancing here.
Thanks,
Belinda
I am looking to Refinance with Newcastle Permanent Fixed rate of 3.99%, I don’t want any redraw facility, just a basic home loan, straight swap from my current bank, as this is an excellent rate.
My current mortgage is at $545,000, it was valued 6 months ago at $630,000 by 2 different banks.
Will there be LMI? How much would it be?
Is there any way of avoiding LMI?
Can assets be taken in consideration? Current equity if any?
I want to avoid borrowing more than $545,000.
Thanks.
I have just refinanced from NAB to Newcastle for their 3 year fixed rate at 3.99% This is an excellent offer – there was no establishment fee, there are no ongoing account fees, and the $1000 refinance cashback they are offering at the moment covered the mortgage discharge/registration/legal fees.
You can also deposit an extra 25k per year without penalty. The process was smooth and easy, despite the fact I’m self-employed and live in Perth (there are no NPBS branches here). All done by email/post. I did ask NAB if they could match the interest rate as I have been a customer of theirs for years – the best they could offer was 4.29% Disappointing they didn’t want to retain me as a client, but feel very positive about the move and feel pleased I’m supporting a smaller business.
Hi Ray,
Thanks for your enquiry.
If you’d like to apply for the Newcastle Permanent Fixed rate home loan, you can click on the ‘go to site’ button on this page.
With Newcastle Permanent, you can borrow up to 95% of the property’s value. However if you borrow over 80% of the property value, you’ll need to pay LMI.
The cost of LMI will vary depending on your borrowing terms, so it would be best to speak with Newcastle Permanent directly.
You can avoid LMI by keeping your loan to value ratio (LVR) below 80% or taking out a family guarantee, among others. You can read more about LMI on this page.
Thanks,
Belinda
My property is worth more than $600,000.00. If I need to refinance it for $370,000.00, can I avoid LMI as this is less than 80% . I owe $370,000.00 at the moment.
-Don
i noticed that your loans were to a max of 80%
of value. do you offer 100% loans if i have sufficient security in other property
thanks regards Frank
Hi Frank,
Thanks for your enquiry.
finder.com.au is an online comparison service, we are not an issuing provider.
With the Newcastle Permanent Fixed Rate home loan, they offer a maximum LVR of 80%, and a maximum insured LVR of 95% which is the maximum amount you can borrow with Lender’s Mortgage Insurance.
I hope this clarifies things for you.
Thanks,
Belinda
Hi Don,
Thank you for getting touch.
In general most loans on the market won’t charge you LMI if you’re borrowing less than 80% of the value of the property, with the exception of some low doc loans that have a lower threshold before LMI is charged. Please contact your lender to get specific advice on your particular loan.
Regards
Jodie
can I avoid mortgage insurance using my equity.
Hi Sarj,
Thanks for your question.
It is possible to avoid paying Lenders Mortgage Insurance (LMI) by factoring equity into your loan. Given that you have sufficient equity you can avoid LMI by ensuring that your total loan to value ratio (LVR) is 80% or less.
If a person owns a home worth $500 000 and they currently owe $200 000, they would have a total of $300 000 equity and a Loan to Value Ratio (LVR) of 40%. It would be possible to refinance by accessing $200 000 of their equity which would boost the LVR to 80%. In this case, LMI would not be payable.
It would also be possible to take out a Line of Credit loan to avoid paying LMI premiums.
Please keep in mind that your ability to use equity to avoid LMI will depend on the type of loan that you already have. Ensure that you speak with your lender or financial advisor to determine whether this is a suitable option for you.
You may be interested to read more about refinancing for property investment.
I hope this helps.
Thanks,
Belinda
Just wondering if I am able to transfer the construction part of a new build over to Newcastle Permanent. The loan on the land is fixed with another lender. The 3.99% is very enticing.
How long is the $1000 cash back offer available for loan transfers and the period of no application fees?
Hi Annie,
Thank you for getting in touch, we have contacted you via email.
Regards
Jodie
Can LMI be added to the loan if you borrow 95% for a land only purchase?
Hi Rob,
Thank you for your question.
The 95% maximum insured LVR does apply for vacant land purchases. 2 to 3% of the 95% is covered by LMI. The remaining 5% will need to be a cash deposit to make up the full 100% of the loan value.
You will however need to speak to Newcastle Permanent after enquiring to ensure that you meet the criteria to borrow up to 95% with LMI.
Cheers,
Jeremy
I don’t fully understand the Comparison Rate difference. For 1yr fixed rate @ 3.99% with a comparison rate 5.21%, but with no fees to charge, why is the comparison rate still so high comparing to other loan providers?
Hi Jay,
Thanks for your question.
It is calculated including (the $500 establishment fee which is not currently charged) the actual interest rate offered for the initial term, and then the proposed interest rate on the Real Options Variable Rate home loan for the balance of the whole term.
Cheers,
Shirley
Hi we are looking at buying house and land package. My husband and I have both been through divorce where we came out with debts. We rent and find it hard to get a deposit together. Cost of house and land package is approx 375k. Are we eligible for this loan
Hi Barbara,
Thanks for your question.
Depending on the type of loan that you want, you’ll need a deposit of at least 5% to be eligible with Newcastle Permanent.
Alternatively, you can compare a range of low-deposit home loans on this page.
No deposit home loans are generally available if you have a guarantor.
Cheers,
Shirley
95% lvr with insurance.
3.99% fixed one year.
no costs
can I utilise a offset account with this?
Hi Fraser,
Thanks for your question.
Unfortunately there is no offset account available with the fixed rate option. If you would like to discuss your eligibility or options, please get in touch with Newcastle Permanent directly by clicking on ‘go to site’.
Cheers,
Shirley