One of Australia’s leading customer-owned banks, Teachers Mutual Bank, is to offer key workers a specialist rate on home loans.
This comes on the back of a report that those working in essential services are all but priced out of both Sydney and Melbourne.
“Teachers Mutual Bank Limited has four divisions that each serve essential workers in the key areas of education, emergency services and healthcare,” said Mark Middleton, Head of Third Party Distribution.
“Essential workers do so much for the community. This has been heightened in recent times as they have been on the frontline of so many of the challenges we have faced with the COVID-19 pandemic, bushfires and floods. To show our appreciation for the essential workers we serve, we want to be the bank that looks after them in return.”
Teachers Mutual are the only bank in Australia to offer a Responsible Investment Association of Australasia (RIAA) certification along with their home loans, ensuring that the funds are not used in unethical industries.
“We are very proud to be the only bank in Australia to have all wholesale and retail mortgages and deposits Certified as Responsible by the RIAA,” said Middleton. “This means that every single mortgage product we sell is socially responsible at zero cost to our members.”
“We’re aware that brokers and their clients are looking for third party certification and transparency when it comes to social responsibility. The RIAA Certification is one way we reinforce our commitment to align our products and services with the needs of the community.”
“We aren’t like other banks – profit for purpose is our business model and philosophy. Climate change is one of the biggest crises facing the world, and financial institutions have the opportunity to make a difference from both their direct footprint as well as the impact that occurs from investment and lending. This is why we do not lend to or invest in harmful industries.”
This is just one of the aspects that set customer-owned banks apart.
“One of the main benefits a mutual can offer is a sense of community and belonging,” said Middleton. “Our customers are our members and they each hold an equal share in the Bank. This means what our members want aligns with what we deliver.”
“Instead of profits being distributed to institutional shareholders and investors via dividends, a part of our profits are re-invested back into the Bank to benefit all members and the communities they support.”
