Thanks to flashi007
- Available for buying and refinancing
- Unlimited payments without penalty
- No monthly or annual fees
- Free online redraw
Variable Rate Home Loan 4.99% (5.04% CR), Max 80% LVR @ Police Credit Union
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How Pacific mortgage group better?
I mean they didn’t say it was better.. maybe a good alternative if the police reject your application.
Because you dont have to be a Policeman or be a member of the Police Credit Union.
So open to everyoneYou don't with PCU
I was first comment on the Pacific mortgage group post on ozbargain commenting about police credit union
So I thought I would comment first on the police credit union post commenting about PMG
Home loan-ception
This looks good. It's at par with PCU which I thought was the cheapest in the market with offset accounts. Good to know there are other options
What is PSU - people choice credit union?
No. People's Choice Union
No. Power Supply Unit
Still no offset even at a higher rate
Unlimited redraws tho
redraws are no good if you plan you use the property as a rental in the future.
@petestrash: Maybe we can change the loan provider before we intend to lease it. But for now, we can move over to this one? is this ok?
@petestrash: Sorry may I ask why this is? We currently occupy but maybe renting out for a couple of years
has anyone used these guys
Yes, overall they're great and I would use them again. Smaller bank based in Adelaide, with all on shore staff so they are practical and helpful when you need to speak to customer support.
Doesn't matter, if they're incompetent then you just get a free house
thaaaats not how it works. Another financial institution would just buy up your contract
I'm joking, but even if they are bad it does actually work in your favour > ombudsmen complaints & resulting compensation.
This PoliceCU deal was posted yesterday (by @dealhunting007) but marked as unobtainable by the moderators - not sure why - seems pretty obtainable to me, and a great rate!
I'll probably attempt to obtain it myself in the next couple of weeks.
Same here - planning to give them a call tomorrow to see if there is a catch.
Same, I thought it is for members only. If available it is great savings if obtainable.
Also they offer same rate for investors
Mods got some explaining to do
The deal posted said they offered a 100% offset account which they don't.
Also called my bank to find out if my bank can match the rates, it turns out the PCU loan doesnt come with offset account.
Mods might be some millernials who spent all their money on avocado toast and can't buy a house amirite /sarcasm
The only thing I can think of is that it was posted in the title that it had a 100% offset which it didn’t have. Would’ve been an easy edit though to adjust and keep the deal up.
The deal posted said they offered a 100% offset account which they don't.
Can you refinance to them if you are not a police lol? The rate seems crazy low
In the disclaimer: Special Offer rate may not move in line with RBA cash rate changes.
I suspect these guys are just pre-empting the next rate cut and you are getting it now but not again when it happens.
so that's a win? you get the rate cut earlier
Hardly worth refinancing to get a rate cut a month or two early, and even then it would probably take the better part of a month to refinance.
My take is they will not pass on the next 2 rate cuts.
Do you think 2 rate cuts will come before end of the year.
If you cant get 6 months saving on million dolar loan it is around 5000.
Theen we can move to another lender if they are not passing 3rd rate cut.
There no prize for loyalty .
IMB is offering 4000 casback but their rates gone up slightly.@gamesover: how often have you refinanced in last few years? It literally fill out an application form and then wait for the banks to change……. Used to be alot harder, but its simple now
@gamesover: Filling out a few forms over 1-2 hours is not that exhausting if it saves you a month's pay….
But if you're hiring people doing something easier than that for $5k per hour then let me know when I can start!
@Wiser: That's what most financial institutions are saying (and acting somewhat accordingly)..
but no one knows for sure (especially when you look at how certain the last rate cut was meant to be), so break out the horoscopes, crystal ball, ouija board or colour of your dog's urine - they'll probably be just as accurate@Jaspa7: Rmember The RBA governor made a statement that interest rates will not go up in near future. You know what actually happened.
I am not saying it will not go down especially with the the gloomy outlook for global markets helped by Trump .
All big corps are saving funds to pay off loans during an expected downturn.
With huge redundancies across big business the job market is not looking good either.
All points to a significant reduction in BlR.
@Wiser: @Wiser, I'd say waiting to see the 12th Aug rates decision and how this PCU react. If RBA cuts and PCU doesn't pass to special rate customers, then it's just 0.25% advantage, which is not that attractive compared to $4000 casback.
Is there any bank that guarantees to move their rates in line with RBA cash rate changes?
No, but based on the rate and the fact they have put that in the terms you can read between the lines and guarantee that is the lowest you'll be getting for the next 1 or even 2 cuts.
No bank guarantees they'll move with interest rates.
Athena Home Loans had that as a guarantee (not sure if they have anymore). They would pass the cuts immediately following RBA announcements. They used to be a fav around OzBargain and Whirlpool, now they aren't even competitive in their CRs
Yep. They became too greedy.
Athena used to but their rates aren't that good any more.
Years baack loans.com.au had such a product.
I dont think anyone does that any more.
Here's the disclaimer text:
Disclaimer
*SPECIAL OFFER: Terms, conditions, fees, charges and lending criteria apply. Full details upon request. Interest rates current as at 21/07/2025 and subject to change. Special Offer rate may not move in line with RBA cash rate changes. Maximum Loan to Valuation Ratio is 80%. Owner Occupied and new to PCU Lending only with a minimum loan amount of $300,000. Comparison rate is based on a secured $150,000 loan over 25 years. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Please consider if the product is right for you. PCU reserves the right to withdraw or amend this offer at any time. The minimum available online redraw amount is $200. The Target Market Determinations are available at www.policecu.com.au/target-market-determination or by calling 1300 131 844. *No further discounts apply.
Shame no offset account, guess ill stick with loans.com for now
They offer unlimited redraw. What's the specific benefit of offset that you're after?
Tax
For the uneducated could you explain what tax difference this makes? Sorry not familiar
Edit: should have read down first - if you pay off then make it an investment property you can’t tax deduct interest if redrawn?
@Milkywayss: In the eyes of the taxman, redrawing money already paid into a loan counts as a new loan.
The tax deductibility of any loan you have, is dependant on whether the money you loaned was directly used to acquire producing an income generating asset (e.g. investment)
So for instance, say you buy a house to live in, borrowed 800k and over the years you've been paying extra money into redraw so that you've whittled your balance down to 100k, vs a loan limit of 500k (which it'd be if you only made minimums)
Now you want to upsize, so you take take out the extra 400k that you've paid into redraw and use it as a deposit for your next home.
Meanwhile you decide you're going to keep your old house and rent it out as an investment property.
Even though you currently owe 500k on that property, you can only claim a tax deduction on any interest charges associated with 100k of that loan. Because the other 400k counts is new borrowing and was used to buy your next house, whereas the original 100k leftover was considered to be used for purchasing that previous house which is now an income producing asset.
On the flipside you have an offset account with 400k in it, and 500k on your loan. You're paying the same amount of interest; but if you went and withdrew the 400k from your offset to buy your next property; all 500k of that original loan is considered to have been used to buy that original property and thus any interest you pay on that 500k will now be tax deductible.
Hope that makes sense.
loans.com.au aren't an ADI are they? So your offset isn't covered by the government 250k guarantee
Doesn't look like any offset huh
Only redraw from what I can see.
Anecdotal: We made do just fine with redraw (with Tiimely bank though).
Kept a bit of cash in a HISA for expected expenses + a small buffer and rest pumped into the mortgage. Took less than 24hrs to redraw whenever we needed.
Offset is ideal but probably won't outweight a better rate.
I was with Tiimely with an Offset, it was still a slow process to withdraw elsewhere, no PayID. Moved to Unloan recently, instant withdrawals to external accounts via redraw, with no offset.
Offset pretty useless if you are just owner occupied
There are advatages.
If you are planning to turn your family home into an investment property later, it is better to pay bare minimum and keep rest in offset account.
Once you pay off your loan ATO will not consider redrawn amount as you liability against the investment property.
For example your loan is 500000
Then you paied 100000 and have 50000 in your offset.
For tax purposes your liability id 400000.
If you put that 50000 into your loan account , the negative gearing will be against 350000 even if you redraw 50000.
Exactly
I hadn’t considered this! Can you just make the change/refinance to an offset home loan and move the redraw just before changing the loan purpose to investment?
@primegrizzlybear: No you can't - purpose of the money is key. If you redraw before switching to investment and it's for private purposes - that portion will be private (unless you spent it on the house of course).
Exactly right, with the exception of amounts redrawn for the purpose of investing back into the property (for repairs, etc), which will still be deductible. However, that's a headache in itself, because it means at the point of converting PPOR to IP, you'll need to scrutinise your entire redraw history to determine the purpose for each one.
What your liability has to do with your taxes? If you pay % on your investment mortgage, it's your expense…
I was curious why the mods removed this as a deal yesterday too. It's very much obtainable. Some confuse them with the mob that merged with BankVic
There are/were two different Police Credit unions. One founded 1974 was rebranded in 2013 to BankVic.
This deal they were founded in 1970 and offices based in SA and NT customers and is different.
Maybe there was confusion with this and unpublished
The deal posted said they offered a 100% offset account which they don't.
Yay it's looks like November 2020 again
It hurts
A Time Machine would be handy but yes need a 10 year fix at least.
Those super cheap rates were made possible by the RBA loaning the banks money under what was innocuously called the Term Funding Facility. I think the taste charged to the banks was 0.2% provided that they on lent it for residential home loans.
The rough rule of thumb for residential lending is that banks need an interest rate margin of 2% between what they charge their customers on home loans and what they are paying to borrow the money (either depositors or the money markets). The rule of thumb is 1% is to keep the lights on and the other 1% is the profit margin.
As soon as the Term Funding Facility stopped, the 4 year and ~2% deals vanished. Good while it lasted though.
I got this! But also stacked with Port Adelaide membership and got 7k cashback. One of the best deals I've made.
Sadly no Offset
Is 4.99 worth fixing? Maybe 2 years? Thinking of getting my bank to match it
lol no
You reckon we'll be sub 5% variable by july 2027
Absolutely.
Big banks are forecasting 4 rate cuts by then
@thrillhouseozb: Forecasting is one thing, reality another. Things can change very quickly, GFC and covid being good examples. Or RBA governors announcing no expected rate increases before 2024…..
So we might be sub 5% variable, but it is certainly not guaranteed.
Always a gamble but does at least provide certainty. Predicting interest rates is a hazardous pursuit.
If it is 4% fixed I will take it for 3-4 years
i'd take that offer.
They charge $420 package fees, but no benefits of any package.
They (probably) won’t pass on the first cut after your loan is approved and may not pass the next one’s in full.Yeah they could be dodgy. Take LCU for example they used to have a first buyers product that offered 0.5% lower rate than their variable rate for the first 3 years. They passed the first rate cut in full, but the second time they only passed 0.09% or something. Still competitive rate and good deal, I would say, given that they offer free offset accounts. But it's interesting that they deleted all the rate cut news from their website, including the announcement when the fully passed the first rate cut.
Deleting a published news release is not good sign for a bank or any ADI.
BTW, what is this LCU you mentioned?Just another credit union - Laboratories Credit Union
They say no annual or monthly fess on key highlights.But higher comparison rate points to something.
Copied from their portal
Simply Low Home Loan Special Offer
Variable rate
No monthly or annual fees
Only 20% minimum deposit
4.99
%
P.A.
Variable rate
5.04
%
P.A.I think some fees to refinance out / at end of mortgage?
They actually charge more than that, here is what they sent me this morning (I am looking at changing to them).
"I would also like to confirm the fees to refinance:Application fee $420
Registration of mortgage $175.70
Registration of discharge $175.70
Title search $21.10
Mortgage preparation $287
Valuation (quote to be obtained once conditional approval obtained ) approximately $300-$400"I am a little bit of confused. Earlier @ClumpyGinger mentioned $420 package fee which is usually annually charged fee in other banks. And here your message says a $420 application fee (which should be once off).
Anyway, with the non-waiver application fees and other costs (bank and gov) adds up, this greatly reduced the attractiveness of this "special" rate.
Any deal with decent cashback nowadays? Even just to cover the refinance cost would be nice.
Investment
a) regional bank Australia - 5.69 P&I 2k
b Newcastle permanent - 5.69 - 3k
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Pacific mortgage group are at 5.39%
https://www.pmgonline.com.au/standard-variable-home-loan/