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Teachers Mutual has unveiled a new streamlined home loan portfolio, slashing its previous six offerings down to three products.
The new range has slimmed the bank’s previous mortgage products into three offerings: Classic Home Loan, Your Way and Your Way Plus.
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Teachers Mutual Bank Limited has also introduced new benefits catered to essential workers in education, emergency services and healthcare. If such workers take up the new Your Way Plus package, they will receive a variable interest rate reduced by 0.05 per cent, and if they are a first home buyer, the loan’s annual fees will be waived.
The Your Way Plus package will also include an offset account, a redraw facility and the ability to make additional payments on variable rates and up to $10,000 per year on fixed rates.
Alternatively, the Classic Home Loan product is being marketed for members who do not want to pay for features they won’t use.
Chief executive Steve James commented the group is hoping the new suite will unlock an "uptick in applications" from brokers.
"In the redesign process, we have taken in the feedback we have received from our brokers and their clients. For example ensuring the availability of 100% offset on fixed and variable rates as well as access to fee-free redraw," he said.
"The new design of our home loan portfolio will make it simpler and easier for brokers to recommend the most suitable product for their client’s needs. The third party channel has been a key factor in the growth of our bank over the years, and we are constantly looking for ways to continue to support our broker partners to deliver high quality products to their clients. ”
Teachers Mutual has also aimed to keep products that are simple to understand for consumers in its overhaul.
“Choosing the right home loan is a significant and potentially overwhelming decision for any person to make,” Mr James said.
“We want to ensure that we are doing everything we can to offer products that are easy to understand and have clear and distinct benefits for those with unique needs.”
Further, Teachers Mutual has secured a certification from the Responsible Investment Association of Australia (RIAA), Mr James noted. The bank has claimed the title as the first in Australia to have its wholesale and retail mortgage products RIAA-certified.
“This is our guarantee to members that we won’t fund their loans with the proceeds of harmful industries such as alcohol, armaments, tobacco and deforestation, nor will we use their deposits and investments to fund those industries,” Mr James said.
The new products will be available from 29 June.
Teachers Mutual flagged that it would be moving to a “digital first” strategy and developing an online platform in October last year.
In December, it partnered with a platform, Your Financial Wellness, for research into financial stress.
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