Author: Melissa Webb

 Because Police Bank is run by members, the well-being of our communities is very important to us. In this article, we look at some of the ways we give back to our community.

As a member-owned bank, we put our customers ahead of profits and we give back to the community – because we believe that building strong communities benefits us all.

It’s a way of thinking that goes back to our origins. Police Bank started in the early 1960s when a group of police officers had the idea of forming a mutual organisation for the benefit of all police. We’ve been 100% about our members ever since.

This approach can be seen among the growing family of banks in Australia that have a similar ownership model and similar goals around offering competitive rates, a strong service culture and supporting local communities.

As we covered a recent article, a study commissioned by the Customer Owned Banking Association (COBA) found the sector distributes around $6 per member per year to charitable organisations and community sponsorships. With a COBA membership of around five million, this is equivalent to $30 million injected directly into the community.

Last financial year, Police Bank reinvested more than 10% of profits back into the police community in the form of donations and sponsorships.

In this article, we thought we’d take the time to share with you a few of the community events we sponsor as a way of giving back to and supporting our communities.

Blue Ribbon Ball

Police Bank is a proud sponsor of the Blue Ribbon Ball, the largest annual fundraiser for NSW Police Legacy, an organisation that raises money to provide care and ongoing support to the families of police officers who have suffered a loss.  This year we also donated a $10,000 first place prize for the Blue Ribbon Raffle, which is drawn at the event. 

As well as raising much needed funds for the valuable work of Policy Legacy, the black tie gala dinner is also a chance for the community to recognise and acknowledge the proud history, traditions and contributions of the NSW Police Force. This year the event focused on celebrating leadership, and supporting our young Police Legatees.

Police Bank stood up on the night of the blue ribbon ball and made a pledge (along with others in the room) to support NSW Police Legacy Education Grant Program by donating an additional 10K. This support can be crucial for a family trying to deal with loss.

The ball began its life in 2002 as the “Blue Ribbon Memorial Dinner”, held in honour of Constable Glenn McEnallay VA, tragically killed on duty at the age of just 26. The event celebrates his memory, and the memory of all fallen NSW Police. 

Heart to Heart Walk

First responders are twice as likely to report suicidal thoughts, three times more likely to have a plan for completion, and six times more likely to experience symptoms of PTSD (for those who have spent more than ten years in the role[RT1] ).[i]

To raise awareness for first responder mental health research and initiatives, the Heart 2 Heart Foundation has organised a 3,000 kilometre charity walk. The walk will depart from the Northern Territory in July and finish back in Canberra, raising awareness and funds for this very important cause.

As the first platinum sponsor, Police Bank is proud to support the fight for better mental health services for all Australian first responders and their families.

Ride for Justice

Founded by acclaimed crime reporter Simon Bouda, the annual Ride 4 Justice raises funds for the Homicide Victims’ Support Group, who offer counselling, support, and information to families and friends of homicide victims throughout NSW.

In 2023, more than 200 riders took part – one of the biggest turn outs to date! As the main sponsor of the event, we look forward to being a part of the inspiring event for many years to come.

Police Bank Cup

Sport brings together people and communities, strengthens social networks, builds a sense of belonging, and gives us role models that can inspire and unify us. By encouraging greater participation in sport and physical activity, sporting events can further support our physical and mental well-being.

Police Bank is a proud sponsor of several sporting organisations and events around the country including NSW Police Rugby, which we have supported for several years now. We sponsor the annual Police Bank Cup rugby league competition, an event open to serving NSW Police Officers who play for a variety of city-based teams.

NSW Police & Emergency Services Games

From indoor hockey and cross country running to axe throwing and Brazilian jiu jitsu, the NSW Police & Emergency Services Games hosts more than 30 different sporting events. Last year the games were contested over six days of competition within the Wollongong local government area.

The competition is open to employees of NSW Police, Fire and Rescue, Ambulance, State Emergency Service and ADF and AFP posted to NSW. Retired and family members from each of these agencies are also encouraged to take part.

Tasmanian Police Charity Ride

Last year for the first time, we sponsored the Tasmanian Police Charity Ride.

In December, 100 people including 80 riders and five police bikes started off in Sheffield, heading to Cradle Mountain before finishing in Tarraleah, passing breathtaking backdrops along the way.

Established in 2006, the charity ride was started to give Tasmania Police and State Service employees the opportunity to raise money to support young people in need.

Australasian Customs Golf Carnival

To support the Australasian Customs Golf Carnival held in 2022, Border Bank – a part of the Police Bank network – offered $15,000 for a hole-in-one on each of the four days.

Teams from Western Australia, South Australia, NSW, Victoria, Queensland, and New Zealand took part in the competition.

Smaller community events

As well as the bigger competitions, we support many smaller events throughout the year that have big impacts on the individuals involved and local communities.

In November last year, we sponsored a special event for the NSW Police Dog Unit & Mounted Unit, supporting Police Legacy NSW. Staff from both commands came together for a fun day out with some friendly sport competition, raising money for the families of police officers who have suffered loss.

Run4Blue

Sometimes, the contributions are made more broadly by our fabulous team of employees at Police Bank.

For instance, last year our team took part in the annual Run4Blue virtual running race to drive awareness and much-needed funds for Police Legacy.

Around $73,000 was raise for families of fallen police – an incredible achievement for all involved. Run 4 Blue kicks off in May, so be sure to keep an eye out for how you can get involved!

Taking community members to their sporting heroes

Sometimes it’s about taking members of the community to see their sporting heroes. For instance, we helped fund a special trip to the Rugby League Indigenous All Stars Game for a group of Sydney local Indigenous kids. The kids cheered on their heroes and shook players hands following the game – someone even took home a pair of game boots.

In October, in the leadup to the Supercars event at Bathurst, the Police Association of NSW teamed up with our partners NSW Police Legacy and Police Bank to give 11 very special Police Legatees a once in a lifetime experience. Travelling from all over the State to Bathurst with our organisers and executive members, the legatees were guests of Supercars and given the honour of travelling in the New South Wales Historic Patrol Vehicles on a lap of the famous Mount Panorama track just prior to the Supercars’ practice session.

These are just some of the events that we support as we seek to give back to our communities. We will keep building on our collective success to find new ways to support members and their families within the police community.

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 [RT1]Source: https://www.policebank.com.au/walking-towards-a-brighter-future-police-bank-in-community

The vertical jump and hand grip tests were popular among visitors to NSW Police’s award-winning exhibit at the Royal Easter Show.

The NSW Police exhibit at the Royal Easter Show was well attended by visitors eager to learn about careers in the force and learn more about policing in general.

Popular among young and all old were the vertical jump test and hand grip strength tests that form part of the capacity testing regime required to get into the NSW Police Academy.

Kids especially enjoyed being photographed on the police motorbike and jet ski and have their fingerprints taken.

The exhibit was manned by a range of police including general duties, detectives, higher intelligence crime officers, and members of the recruitment team.

Police Bank was pleased to sponsor the exhibit and members of our team were on the ground to provide support at the bustling stand.

NSW Police won a Silver Award for the best exhibit at the Royal Easter Show, which is Australia’s largest ticketed event, attracting more than 828,000 attendees on average.

“The judging criteria was not only based on the physical appearance of the stand, however also the interactions which were occurring on the exhibit. This is a real testament to all staff, including the Police Bank team, who were so wonderful throughout the show,” said Maddison Andriano, Marketing Project Officer.

It’s not just a deposit you’ll need to save for when planning to buy your first home. Here we look at some of the extra costs you need to factor in.

If you are planning to buy your own home, you might be saving for deposit. However, there are other upfront costs that also need to be taken into account.

Upfront and hidden costs can add as much as $40,000[i] to the purchase price of a property, according to realestate.com.au, so it’s critical that buyers understand them.

Stamp duty

Stamp duty, also known as transfer duty, is the biggest upfront cost beside the deposit.  Stamp duty varies significantly from state to state. In NSW, stamp duty on a $500,000 home is around $17,500. ^[ii]However, most states have stamp duty wavers for first home buyers. In New South Wales, the government offers a full or partial exemption under the First Home Buyers Assistance Scheme for the purchase of homes valued at less than $800,000.

Lenders’ mortgage insurance

Depending on the size of your deposit, you may need to pay lenders’ mortgage insurance. You can expect to pay lenders’ mortgage insurance if you borrow more than 80% of your home’s value. This type of insurance protects the lender, not the borrower. Lenders’ mortgage insurance can be expensive: If you bought a $600,000 house with a 5% deposit of $30,000 then your insurance premium could cost more than $22,000.[iii]

If you are a first home buyer with a small deposit, it’s worth checking if you qualify for the First Home Guarantee, an Australian Government initiative to support eligible home buyers to purchase their first home sooner. With this scheme, the National Housing Finance and Investment Corporation (Housing Australia) provides a guarantee to participating lenders, which enables eligible first home buyers with a deposit of between 5 and 20 per cent to buy a home without paying for LMI. You can find out more about eligibility requirements for the guarantee by visiting the Housing Australia’s website.

Police Bank is a proud participating lender in the scheme. If you qualify for the First Home Guarantee, we’ll help you buy your first home with as little as 5% deposit.

Inspection fees

Building and pest inspections are critical when you buy a house in order to assess whether it has any costly hidden issues. Skimp in this area and these issues could cost you thousands of dollars down the track. The price of an inspection depends on the property and the time it takes to evaluate but as a general guide, the cost for a standard report on a typical residential property is around $500, according to LJ Hooker.[iv]

Conveyancing fees

If you are buying a property, you’ll need to satisfy a series of legal requirements to transfer legal title from the seller to you.  It is important to pay a conveyancer to make sure these requirements are satisfied and do all the paperwork that goes with it. For most single dwellings, the cost of conveyancing is between $800 and $2,500, according to realestate.com.au,[v] but costs increase with the complexity of the sale.

Home loan fees

Finder estimates that the average cost of upfront home loan fees is $686[vi]. This can include:

• Application fee – Also called an establishment fee, this is a fee that covers the cost of documentation of the new mortgage.
• Valuation fee – This pays for a valuation of the property you are purchasing. The valuation helps the lender ensure the amount you are borrowing, and size of your deposit are appropriate for the value of the property.
• Mortgage registration fee – This is the fee for the lender registering your mortgage with the relevant local government authority.

Building insurance

Your lender may expect you to take out building insurance before settlement. A survey by finder found the average home insurance cost is $143 a month. [vii]

Moving costs

The cost of moving varies depending on the number of items to be moved and the distance between locations. realestate.com.au estimates it can cost anything between $300 and $10,000.[viii]

As you can see, the upfront costs of buying a home go well beyond saving a deposit. For first home buyers, your costs may be eased somewhat by assistance schemes. But it’s important to have an estimate of your overall costs so that you can factor these into your savings plan and don’t find your deposit is eaten away by fees. Keep these extra costs in mind to avoid disappointment and purchase your first home faster.

The Police Bank team is here to support members through the entire home buying process. You can reach out anytime for assistance or advice. To get in touch, click here.

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[i] https://www.realestate.com.au/advice/hidden-costs-buying-home/

[ii] Revenue NSW stamp duty calculator https://www.apps09.revenue.nsw.gov.au/erevenue/calculators/landsalesimple.php

[iii] https://www.finder.com.au/home-loans/lenders-mortgage-insurance

[iv] https://www.ljhooker.com.au/buy/the-importance-of-inspections

[v] https://www.realestate.com.au/advice/how-conveyancing-works/#cost

[vi] https://www.finder.com.au/home-loan-fees

[vii][vii] https://www.finder.com.au/home-insurance-cost

[viii] https://www.realestate.com.au/advice/how-much-does-it-cost-to-move-house/

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Switching your home loan can be a great way to save money but knowing when and how to refinance can be crucial. Here’s a guide to help you understand if refinancing makes sense for you, and how to go about it.

With official interest rates rising repeatedly and driving up home loan rates, mortgage refinancing has surged to record levels as Australian homeowners look for a way to manage their financial situation. Total refinancing for owner occupiers and investors in January alone amounted $18.6 billion, according to the Australian Bureau of Statistics.[1]

If you are facing an escalation of home loan costs due to rising interest rates, you may be considering whether to switch. Here’s a guide to help you understand if refinancing makes sense for you, and how to go about it.

What is a home loan refinance?

In simple terms, refinancing involves moving from one loan to another, either with your current lender or a new one.  The new loan would typically have a lower rate of interest or offer better features.

Why would I refinance?

You may want to refinance because there has been a change in your personal circumstances, or because you simply want a better deal on your home loan.

Refinancing can be an effective way of managing your money. It may allow you to secure a better interest rate on your mortgage, consolidate debts, pay off a mortgage faster, change your loan type (such as from fixed to floating) or unlock equity in your home.

It may also be that you switch in order to change lenders. When we first take out a home loan, few of us know what we’re going to get. Refinancing can allow you to find a lender with lower interest rates or better customer service. Police Bank offers both.

How does refinancing work?

Once you’ve decided to switch, the process is usually relatively straightforward.

After you’ve chosen a loan, submitted your application and been approved, your new lender will probably handle the rest.

They will likely want to see proof of your income, living expenses, and a few of your latest loan statements.  They’ll likely also organise to have your home valued before you secure your new mortgage.

Assuming it all goes smoothly, your new and old lenders will arrange for your new loan to pay out your existing loan. From here, you start making repayments against your new loan.

6 factors to consider before you switch

Before you refinance, work out whether you’ll save money by refinancing your mortgage. To help with your decision, consider these factors, to ensure the benefits outweigh the costs:

Will your lender give you a better deal? Refinancing doesn’t have to involve moving to another lender. Ask your lender if they can provide a better deal to keep you as a customer.

Are there better offers on the market? Consider several lenders and compare their interest rates and other benefits. Once you have a short list of potential loans, it’s important to also look at the costs involved for each.

What are the costs? The cost of refinancing your home loan often depends on the arrangement you have with your existing lender and what your new lender is offering. For example, some lenders charge fees for ending a mortgage, which have to be balanced against the application and ongoing fees from the new lender.  

Other costs include the fee for valuing your property, and if you’re borrowing more than 80% of the value of your home, you’re also legally required to pay Lender’s Mortgage Insurance.

What are the savings? Sometimes the savings you can make by switching lenders will offset the above fees. In other words, the long-term gains can outweigh the short-term costs. Using a mortgage calculator can help to determine how much you could save by switching to a lower rate loan.

Police Bank also has a cash back offer of up to $4,000†, which can help to cover some of the costs we’ve mentioned, such as exit fees. There are no monthly or annual fees, and a free offset account is available on variable rate loans, so you can pay your salary direct and save on interest costs. NSW Police members receive even further benefits by getting their pay direct debited a day early, saving even more.

Speak to an expert

If you do your research, get organised, and know the costs involved, refinancing can be a smart way to save money or manage your finances. If you’re not quite sure about any aspect of refinancing or how it may work in your circumstances, you can speak to a mortgage broker or someone on our team. We’re here to help make the process easy.

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[1] ABS, Lending Indicators, January 2023 https://www.abs.gov.au/statistics/economy/finance/lending-indicators/latest-release

Refinance Cashback Terms & Conditions

†To be eligible for the Police Bank cashback offer, applicants must refinance an existing Owner Occupied or Investment home loan of $300,000 or more from another financial institution (other than Border Bank and Bank of Heritage Isle) to Police Bank. The offer is only available to applicants who apply and are approved from 22/02/2023 – 03/05/2023 (offer period) eligible loans must settle within 90 days of application. The cashback is only available once to each individual or joint applicant(s). The cashback amount will be credited to either the primary transaction account for single borrowers or a joint account with the primary borrower within 1 month of settlement. If multiple loans apply all loans must be funded before the total cashback is assessed and paid.The final cashback amount is dependent on total loan size funded. Loans greater than or equal to $300,000 and less than or equal to $499,999 are eligible for $1500 cashback. Loans greater than or equal to $500,000 and less than or equal to $749,999 are eligible for $3000 cashback. Loans greater than or equal to $750,000 are eligible for $4000 cashback. This offer is not available for new purchase home loans or in conjunction with any other offer, bonus or discount. We reserve the right to withdraw this offer and/or alter the offer period at any time. Effective date: 22nd of February, 2023.

A pressing need to avoid “entrenched inflation” has been stressed by the head of the Reserve Bank as a major reason for the repeated interest rate hikes that have driven up the home loan costs of everyday Australians. But what is entrenched inflation, really, and why is it so bad?

Announcing its tenth official interest rate rise in less than a year, the Reserve Bank of Australia recently cited the need to avoid “entrenched inflation”.[1]

Australian home loan holders and would-be homeowners could be forgiven for feeling dazed and confused by all the rate rises.

So, what is entrenched inflation, and why is it so bad that it’s worth driving up the home loan costs of everyday Australians to reduce it?

From “transitory” to “entrenched”

To work out how we came to have the highest official interest rates in more than a decade, we need to look at the changes in the words the central bank uses to signal to the market where interest rates are going and why.

In late 2021, when price growth was first starting to ignite after being subdued for several years, RBA Australia Governor Philip Lowe[2] said inflation was expected to be “transitory” –because it was caused by unique factors related to the pandemic.

When households were locked down, they had difficulty spending on many household services and switched their spending to goods such as home entertainment, gym, and office equipment. Supply couldn’t keep up with the surge in demand, resulting in a sharp increase in shipping costs and large rises in the prices of many products.

The central bank expected inflation would come down over time as conditions normalised and lingering supply disruptions were resolved.

But by May 2022, it was a different story. The RBA had begun lifting its cash rate, blaming a faster and bigger-than-expected pickup in inflation as businesses passed on costs to customers and wages began to pick up after a long hiatus.[3]

Inflation was compounded by the war in Ukraine and government spending.

It was the first of a series of rapid-fire rate moves that have left borrowers facing a 50 per cent increase in home loan repayments.[4]

The trouble with entrenched inflation

The RBA said in March it believes the number one near-term economic challenge facing Australia is to make sure that the current episode of high inflation is only temporary. [5]

High inflation is damaging to the economy and undermines living standards. It erodes the value of savings, puts pressure on household budgets, and hurts people on low incomes the most.

If inflation were entrenched, it would mean that the rate of prices would not slow and the price growth we are seeing in the economy would persist for a long period and risk becoming permanent.

The RBA warned that if inflation becomes ingrained in expectations, it requires higher interest rates and a large increase in unemployment to get it back down again.

In both the US and Australia, when high inflation became entrenched in the 1970s and the 1980s, the unemployment rate ultimately ended up rising significantly to get inflation back down.

Inflation may have peaked

The good news is the official rate rises delivered by the RBA, as painful as they may have been, may be having the desired impact on inflation.

In the December quarter, inflation reached 7.8 per cent. This is the highest rate in more than three decades.

However global pressure on inflation may be easing. Inflation has peaked in most economies and is now coming down due to the resolution of supply side problems, softer demand for goods and a decline in some commodity prices.  

In Australia, the monthly Consumer Price Index indicator for January supported to the idea that headline inflation has also peaked in Australia.

The RBA said more rate rises will be needed over the period ahead to ensure that inflation is under control. So, home loan holders are not out of the woods yet, but hopefully most of the pain of rate rises is behind us.

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[1] https://www.rba.gov.au/media-releases/2023/mr-23-07.html

[2] https://www.rba.gov.au/speeches/2021/sp-gov-2021-08-06.html

[3] https://www.rba.gov.au/media-releases/2022/mr-22-12.html

[4] https://www.smh.com.au/property/news/we-try-to-be-pretty-frugal-what-households-are-cutting-as-rates-rise-20230304-p5cpds.html

[5] https://www.rba.gov.au/speeches/2023/sp-gov-2023-03-08.html

Whether you are buying a car, going on holiday, getting married, or planning a road trip, personal loans can help at important times in your life to get where you want to be sooner.

Throughout a lifetime, we embark on various adventures, from traveling overseas and buying a car to getting married and heading off on a road trip with the family.

While exciting, these events can be costly. One way to achieve your goals sooner is via a personal loan, which can add to your savings and boost your buying power.

Personal loans can allow you to borrow a sum that you can repay over time in regular instalments. They provide certainty with fixed weekly, fortnightly or monthly repayments, which can make it easier to plan your finances around and help you to budget.

Buying a car

At some point in your life, you are probably going to buy a car. Whether you have your eye on your first vehicle or want to upgrade to a larger ride as the family grows, a personal loan can help you drive away sooner. It can be used to buy a new or second-hand car from a private seller or a dealer.

Traveling

You may want to embark on a package holiday around Europe or set off to explore Australia in a caravan. When it comes to financing the trip, consider upfront costs, everyday spending money and cash for emergencies. If you need some extra holiday money, a personal loan can help you make your travel dreams come true.

Tying the knot

If you are planning your dream wedding, then you’ve probably got an idea of how much it’s going to cost. There’s no getting around the fact that most weddings are expensive events.  One way to finance your dream day is through a personal loan. You can use the loan to pay for expenses such as booking catering, hiring a venue, or purchasing a wedding dress.

A helping hand, tailored to your needs

At Police Bank, we believe in supporting people through their whole life cycle and helping our members with the big costs that come up at various times in their lives.

Whatever’s next on your horizon, we will work with you to help make your dream a reality.

Police Bank’s Unsecured Personal Loan is the winner of the Mozo Experts Choice Award seven years running.

We offer competitive variable and fixed rate options, all designed to be tailored to suit your needs and budget. 

You can borrow for any worthwhile purpose from the latest in big ticket electronics, white goods and household items to holidays, cars, boats, and bikes.

Why choose a Police Bank personal loan?

Our loans have no account keeping fees or early payout penalties. So you can be sure every dollar you repay is reducing your home loan.

We have pre-approval and 100% finance options, helping make your personal loans even more flexible.

Refinancing and debt consolidation options are also available, making sure we give you the support you need.

For more information on our personal loans, click here.

A new podcast sponsored by Police Bank brings to life true stories from all aspects of policing in New South Wales, from a day in the life of the force’s top cops to the nitty-gritty of the state’s most notorious cases.

At Police Bank we know our members in the police force all have stories to tell about the important work they do day in and day out.

Now we’re helping some of these stories be brought to life in a new podcast.

Inside the NSW Police Force is the official podcast of the NSW Police Force, covering all facets of policing through storytelling.

Weekly episodes will take listeners on a journey from a day in the life of the force’s top police to the nitty-gritty of the state’s most notorious cases.

The series is inspired by the NSW State Crime Command Podcast, a pilot series which had an average of 30,000 listeners per episode.

The NSW State Crime Command Podcast won awards for the Best Branded Podcast at the Australian Podcast Awards and the Australian Commercial Radio Awards in 2021.

With more than 1.2 million downloads, the series also drew information that led to the solution of an 80-year cold case and created other leads for police.

Inside the NSW Police Force will have an expanded remit and will cover all facets of policing in NSW, including live and cold cases in every command.

The podcast is produced by Adam Shand, an author and journalist who began his career in journalism at The Australian newspaper before joining the Nine Television Network.

A Walkley Award winner for investigative journalism, Adam has been producing and hosting award-winning true crime podcasts and TV programs since 2017.

The first episode of Inside the NSW Police Force will be available on 11 April 2023. You can access the podcast on Apple Podcasts and Spotify.