Gateway Credit Union has announced a new partnership with the Australian Scholarships Group (ASG) that helps mortgage holders pay for their child’s school fees.
The offer will allow those signing up for an ASG Pathway Education Fund to receive extra contributions into their account. As well as helping loan holders save for their child’s development, the Fund also qualifies as a scholarship plan and thus comes with the associated tax benefits.
When a new or existing ASG fund holder takes out a new home loan or refinances their mortgage to Gateway, a 0.15% p.a. loyalty bonus will be paid quarterly into their ASG Pathway account. This means someone with a loan balance of $350,000 can receive up to $520 into their fund account in the first year.
“The loyalty bonus is provided by Gateway,” Gateway CEO Paul Thomas told Australian Broker
. “In addition, the ASG fund establishment fee will be waived for eligible Gateway members that open an ASG fund so it costs nothing to join.”
This partnership emerged from research conducted on 1,031 respondents through the firm’s January omnibus which revealed that 28% of Australians found it difficult or stressful to cover school fees.
“As a customer owned bank, the financial wellbeing of our members is very important. We know – and as the research confirmed – that saving for a child’s education can be hard. The partnership with ASG is very much about providing a helping hand for families looking to give their kids a head start,” Thomas said.
Being a smaller player, Gateway always thought outside of the box with regards to the products it offers, he said. This new offering gives mortgage holders a unique position to leverage their home loan and invest in their child’s education.
“From a broader business perspective, the partnership with ASG reflects a deliberate strategic decision. We stand at a crossroads of an ethical revolution in business and we want to play our part.
“This is something we refer to internally as B2We, but that is more commonly known externally as ‘shared values’. In a nutshell, it means as a business we have a focus on ‘doing well by doing good’.”
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