Newcastle Permanent Fixed Rate Home Loan

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.

No reviews yet. Write a review
Avatar

By

Rebecca Pike

Updated

Fact checked

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

Review by

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.

Expert review

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.

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.

Ask an expert

To ask a question simply log in via your email or create an account.

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, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and 6. Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

61 Comments

    Default Gravatar
    Nesh
    June 4, 2016

    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.

    Reply
      AvatarFinder
      Marc
      June 7, 2016

      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.

      Reply
    Default Gravatar
    Bernie
    July 22, 2015

    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

    Reply
      Default Gravatar
      Belinda
      July 23, 2015

      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 3 year fixed rate home loans and you might also be interested to use our borrowing capacity calculator given that your combined income has changed.

      Additionally, you can read more about the refinancing process and understand the costs involved when refinancing.

      I recommend getting in touch with a licensed mortgage broker. A broker can help you understand your financial position and they can leverage their panel of networks to find a lender that’s more inclined to review your application.

      Thanks,
      Belinda

      Reply
    Default Gravatar
    Ray
    June 8, 2015

    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.

    Reply
      Default Gravatar
      Kathryn
      June 10, 2015

      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.

      Reply
      Default Gravatar
      Belinda
      June 9, 2015

      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 will 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 Lenders Mortgage Insurance by keeping your loan to value ratio (LVR) below 80% or taking out a family guarantee, among others.

      I also recommend getting in touch with a licensed mortgage broker. A broker can help you understand your financial position and they can leverage their panel of networks to find a lender that’s more inclined to review your application.

      Thanks,
      Belinda

      Reply
    Default Gravatar
    Don
    April 19, 2015

    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

    Reply
      Default Gravatar
      Frank
      May 26, 2015

      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

      Reply
      Default Gravatar
      Belinda
      May 29, 2015

      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

      Reply
      Default Gravatar
      jodie.humphries@hiveempire.com
      April 24, 2015

      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

      Reply
    Default Gravatar
    sarj
    April 14, 2015

    can I avoid mortgage insurance using my equity.

    Reply
      Default Gravatar
      Belinda
      April 15, 2015

      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 also recommend getting in touch with a licensed mortgage broker that can help you understand your financial position and they can leverage their panel of networks to find a lender that’s more inclined to review your application.

      I hope this helps.

      Thanks,
      Belinda

      Reply
Go to site