This was posted 1 year 6 months 19 days ago, and might be an out-dated deal.

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Police Credit Union: 3.64% (CR 3.64%) Variable Home Loan, 3.94% (CR 3.94%) Investment Home Loan, LVR: <80%, Free 100% Offset

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Police Credit Union: 3.64% (CR 3.64%) Variable Home Loan, 3.94% (CR 3.94%) Investment Home Loan, LVR: <80%, Free 100% Offset
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paul11 on 25/10/2022 - 18:22 policecu.com.au (3560 clicks)
Last edited 02/11/2022 - 18:37

So CBA keep pissing off existing customers while offering deeply discounted rate for new customers. Can't pay this loyalty tax anymore and have decided to move on.

Recently applied for refinancing my investment property and a new owner occupied mortgages with these guys. Great customer service so far. No cashback, but I don't care if the interest rate is so low. Gonna save ~$15K/year in interest alone after moving to them based upon current rates (i.e. reducing my interest rate from 5.51% to 3.94%). They mostly operate in SA and NT, but you can be anywhere in Australia. I am in VIC. You don't need to be in Police force either.

With the special promotion going on, here’s what you will enjoy by taking out a Home Loan with Police Credit Union:

  • $0 Package Fee
  • $0 Valuation Fee
  • $0 Registration Fee
  • $0 Title Search
  • $0 Document Preparation

Hope this help someone!

EDIT: Seems like PCU has updated the effective date on their website.

Interest rates are effective as at 01/11/2022

Financial Home Loan Investment Loan

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Police Credit Union
Police Credit Union

closed Comments

  • bigbadboogieman on 25/10/2022 - 21:02

    Their reviews online aren't very well (even recent ones). Their App experience subpar.

    • unhuman on 25/10/2022 - 23:11
      +4

      It’s homeloan. Who cares about app. If you could see balance once a month, you good to go.

      • bigbadboogieman on 25/10/2022 - 23:48
        +3

        Not if you're using the offset as your primary transaction account to keep the interest as low as possible.

  • mrtee on 26/10/2022 - 02:33
    -7

    Do you need to be in the police force?

  • CI on 26/10/2022 - 03:29
    +1

    How does refinancing work ? Do they do full employment check again ?

    • Jiva on 26/10/2022 - 10:44

      I'm keen to know as well.

    • paul11 on 26/10/2022 - 11:11
      +1

      Not sure what you mean by "Full employment check again". They just asked me for "Salary Slips" and "Bank Statements" to verify my income. Also a "contract" if you are a contractor.

      • witsa on 04/11/2022 - 00:11

        So you actually applied? Did you ask how long the special interest rate goes for?

  • spal on 26/10/2022 - 07:34

    In as much as it is a very good deal. The rate card certainly doesn't include the 0.25% October rate hikes. Not sure what the significant lending criteria means. They have mentioned LVR at 80% which is not a problem. Wondering if it means full docs plus higher debt serviceability thresholds. Also, for investment loans their premium is 0.3%. Most lenders are down to 0.2%. You can actually find that some are even offering the home loan rates. Also, do you calculations as in certain circumstances cashbacks might be better and slightly lower rates. One could always get cashbacks and then move to a lower rate lender too.

  • Den on 26/10/2022 - 09:32

    Just last week Beyond had 3.77%, while I was thinking, they are back to 4.37%..

    At least no fees here..

  • Brianqpr on 26/10/2022 - 11:45

    Seems the quoted rate is out of date (doesn't include all RBA increases) and the actual rate is in the range available through a number of lenders.

    Intersting that some on here have moved lenders several times to claim cashback offers. While the profits look good, I'm not sure this behaviour will reflect very well in credit histories/ratings?

    • linkii on 26/10/2022 - 11:56
      +2

      It looks like its a special rate which have not changed in the last few months.

      Their actual non special offer rate is 4.44%. Who knows when the special offer rate will expire.

      The risk here is applying and after a couple of months they may decide to remove the special offer and put you back on the normal rate..

      • paul11 on 26/10/2022 - 12:15
        -1

        That's how variable rates work. They vary, and there is always a risk of rate increase.

        Don't like the risk, then get a fixed rate.

        • linkii on 26/10/2022 - 13:04
          +1

          The issue is this is advertised as a special offer. They won't be able to afford to keep the rate this low when other banks are offering 4% on savings accounts. Especially for a credit union where they won't be able to absorb the losses.

          Whereas with a normal bank with a standard offering of ~4.5% rate. You know it'll stay around the same unless RBA raises the rates again.

          • Brianqpr on 26/10/2022 - 13:32

            @linkii: Absolutely. Its unsustainable to maintain this rate in the current environment. Seems more like one of those honeymoon/introductory rates and potentially slightly dodgy advertising.

          • paul11 on 26/10/2022 - 14:51

            @linkii: A credit union has far less expenses than a standard bank or a big lender. Also, they are not worried about their shareholders and paying dividends to them like the big lenders. Even if a credit union offer the loan 1.5 - 2.0% above the RBA rate, they will make profit. They are offering a 1 year fixed at 4.19 even right now.

        • Brianqpr on 26/10/2022 - 13:39

          You miss the point.

          They are advertising a variable rate which is certain to rise due to RBA increases that have already happened and are not included in the advertised rate yet. While its not strictly false, it is quite misleading and in my opinion deliberately so to attract customers that don't read the small print and will find out the true rate later.

          Fixed rate loans are no longer attractive, however when I fixed at 1.86% for 3 years last year they very much were. Currently saving me a lot of money.

  • CheapAddict on 26/10/2022 - 12:30
    +5

    Just to clarify, i’ve gotten off the phone with a customer rep, the rates are current as of Oct 1 BUT they have not yet passed on the 0.5 sept increase. this will happen Dec. They are also deciding whether they will pass on the Oct .25 which will likely happen.

    So they are yet to pass on the .75 rate increase which will be 4.39% once their rates have been passed on

    • Cheeseplate on 26/10/2022 - 12:54
      +2

      Which makes them in the same ball park as other lenders. This is the problem with int rates moving so fast that a good deal is actually just normal once you factor in their delayed rises.

    • Brianqpr on 26/10/2022 - 13:34

      The .25 will definitely happen, so its safe to add on the .75 to the advertised rate. This is pretty misleading advertising and I've seen a bit of this recently. No doubt the small print covers it but I do wonder that AFCA would make of this.

    • paul11 on 26/10/2022 - 14:41
      +1

      Not necessarily they pass on the full RBA rate hike! They are offering a 1 year fixed rate of 4.19% right now.

  • randomdude14 on 26/10/2022 - 14:41

    WAIT - they are yet to adjust the rates so this advertised rate isn't as good as you might think :D

  • me4president on 27/10/2022 - 00:26

    What you might be able to do instead of going to another bank is, obtain the rates from other lower banks and ask your lender to match, a much easier process. Unless there is like bonus to move, this means you'll most likely get a rate that you want or close to and wont have to do any of the documentation.

    I've done this for my parents in the past.

  • thefrenchduke on 07/11/2022 - 21:29

    Variable is now 4.14% on their website.

  • mr_asstight on 28/11/2022 - 11:42
    +2

    Rejected my application when all other banks would have taken. These guys are super conservative.

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