G&C Mutual Bank’s Essential Worker Home Loan has been announced as winner of the 2024 Finder Innovation Award in the Social Impact Innovation category. These awards celebrate the individuals, teams, and brands who go above and beyond the status quo, continuing to evolve their businesses to meet and exceed the ever-changing needs of Australian consumers. The Social Impact Innovation category recognises businesses driving innovation that is both commercially viable and demonstrates positive social impact.
G&C Mutual Bank CEO Rosanna Argall said, “The independent recognition of our Essential Worker Home Loan demonstrates our ongoing commitment as a values-driven organisation, to support those who support our community.”
As a member-focused, values-driven organisation, G&C Mutual Bank is committed to the ongoing promotion and creation of mutual value and strives to make a positive impact for our members and the communities we are part of.
G&C Mutual Bank has a proud history as a customer-owned bank supporting key worker groups and state government employees including NSW Ambulance and Corrective Services, as well as those in teaching and healthcare. As such, we have long provided special offers and product features to help support the financial wellbeing of these members.
The COVID-19 pandemic saw essential workers forced to physically attend their workplaces, often in high-risk health settings, to maintain critical services during uncertain times. In the ensuing years, house prices rapidly surged, cost-of-living reached record levels and wage disputes came to the fore, making it challenging for essential workers to afford a home close to work.
In October 2023, G&C Mutual Bank launched the Essential Worker Home Loan, specifically designed to recognise the contribution essential workers make to the community by supporting their home ownership journey with a value and feature packed product.
Available for owner-occupier purchase or external refinance, the product features the same low variable interest rate up to 95% LVR; up to $1000 towards third party costs; no establishment or monthly fee; 100% offset account; unlimited redraws and extra repayments; and overtime/shift allowances assessed at 100% for eligible essential services.
The Essential Worker Home Loan is the first social impact product launched under G&C Mutual Bank’s ESG strategy, solidifying the organisation’s commitment to deliver mutually valuable banking for people and planet. In the one year since launch, 130 Essential Worker Home Loans have been funded. Majority of borrowers have been in teaching (26%) and nursing (25%) professions, followed by Corrective Services, paramedics and police officers, with 87% of borrowers being new-to-bank.
The Essential Worker Home Loan features a broader essential worker definition/target group than other options in market, which are mostly comprised of Lenders Mortgage Insurance waivers or discounted offers on standard products, rather than a stand-alone product. It also offers an alternative for first-home buyers limited by price caps under the Home Guarantee Scheme, and following the conclusion of the NSW Shared Equity Scheme pilot. The product also supports targeted customer acquisition, the organisation’s growth objectives, and improved reporting metrics of ESG initiatives.
