Changes to home loan interest rates – effective Monday 1 May 2017
The Bank has made a decision to increase some of its Variable and Fixed Home Loan interest rates effective 1 May 2017:
Owner Occupiers
| Product |
Current Rates |
New Rates |
| (P&I and IO) |
Interest rate p.a |
Comparison rate p.a** |
Interest rate p.a change |
Interest rate p.a1 |
Comparison rate p.a** |
| Solutions Plus Home Loan 2 |
| $150,000-$249,999 |
|
|
|
|
|
| LVR is 60% or less |
4.02% |
4.27% |
+0.10 |
4.12%
|
4.37% |
| LVR is above 60% and less than or equal to 80% |
4.04% |
4.29% |
+0.10 |
4.14%
|
4.39% |
| LVR is above 80% and less than or equal to 90% |
4.64% |
4.89% |
+0.10
|
4.74% |
4.99% |
| LVR is above 90% |
4.90% |
5.15% |
+0.10 |
5.00% |
5.25% |
| $250,000 - $499,999 |
|
|
|
|
|
| LVR is 60% or less |
3.89% |
4.15% |
+0.10 |
3.99%
|
4.24% |
| LVR is above 60% and less than or equal to 80% |
4.00% |
4.25% |
+0.10 |
4.10%
|
4.35% |
| LVR is above 80% and less than or equal to 90% |
4.34% |
4.59% |
+0.10
|
4.44% |
4.69% |
| LVR is above 90% |
4.60% |
4.85% |
+0.10 |
4.70% |
4.95% |
| $500,000 - $749,999 |
|
|
|
|
|
| LVR is 60% or less |
3.87% |
4.13% |
+0.10 |
3.97%
|
4.23% |
| LVR is above 60% and less than or equal to 80% |
3.97% |
4.23% |
+0.10 |
4.07%
|
4.32% |
| LVR is above 80% and less than or equal to 90% |
4.14% |
4.39% |
+0.10
|
4.24% |
4.49% |
| LVR is above 90% |
4.57% |
4.82% |
+0.10 |
4.67% |
4.92% |
| $750,000+ |
|
|
|
|
|
| LVR is 60% or less |
3.85% |
4.11% |
+0.10 |
3.95%
|
4.21% |
| LVR is above 60% and less than or equal to 80% |
3.95% |
4.21% |
+0.10 |
4.05%
|
4.30% |
| LVR is above 80% and less than or equal to 90% |
4.07% |
4.32% |
+0.10
|
4.17% |
4.42% |
| LVR is above 90% |
4.50% |
4.75% |
+0.10 |
4.60% |
4.85% |
| Classic Home Loan |
3.94%
|
3.99%
|
+0.10
|
4.04%
|
4.09%
|
| Interest Only Variable |
5.26%
|
5.31%
|
+0.10
|
5.36% |
5.41%
|
| Flexi Choice |
5.26%
|
5.31%
|
No Change |
| My First Home Loan |
4.81% |
4.81% |
No Change |
| Fixed Rate Home Loan - 1 Year |
3.84%
|
5.17%
|
+0.10 |
3.94%
|
5.18%
|
| Fixed Rate Home Loan - 2 Years |
3.93%
|
5.06%
|
+0.10 |
4.03%
|
5.08%
|
| Fixed Rate Home Loan - 3 Years |
4.15%
|
5.01%
|
+0.05 |
4.20%
|
5.02%
|
| Fixed Rate Home Loan - 4 Years |
4.48%
|
5.04%
|
No Change |
| Fixed Rate Home Loan - 5 Years |
4.61%
|
5.04%
|
No Change |
Investors
| Product |
Current Rates |
New Rates1 |
(P&I and IO)
|
Interest rate p.a |
Comparison rate p.a** |
Interest rate p.a change |
Interest rate p.a1
|
Comparison rate p.a** |
| Solutions Plus $150,000+ |
No longer available |
| Flexi Choice |
5.26%
|
5.31%
|
No Change |
| Interest Only Variable |
5.26%
|
5.31%
|
+0.10
|
5.36%
|
5.41%
|
| Fixed Rate Home Loan - 1 Year |
4.14% |
5.20% |
+0.10 |
4.24%
|
5.21% |
| Fixed Rate Home Loan - 2 Years |
4.23% |
5.12% |
+0.10 |
4.33%
|
5.14% |
| Fixed Rate Home Loan - 3 Years |
4.45% |
5.09% |
+0.05 |
4.50% |
5.11% |
| Fixed Rate Home Loan - 4 Years |
4.78% |
5.14% |
No Change |
| Fixed Rate Home Loan - 5 Years |
4.91% |
5.16% |
No Change |
Why is the Bank increasing Home Loan interest rates when the Reserve Bank has not made any announcements on interest rates?
As a mutual bank we operate in a highly competitive home loan market and are impacted by the cost of funds (including member deposits) and other market conditions to finance our members’ credit needs.
We regularly review our interest rates to ensure they reflect current market conditions. From time to time we adjust our pricing to continue to operate sustainably and competitively while servicing our members’ saving and lending requirements.
Will my repayments increase?
We will be contacting existing home loan borrowers who are impacted by the interest rate change from 10 May 2017. We will advise you of your new interest rate and if there is a change to your minimum repayment. If your new minimum repayment increases, it will be automatically updated.
How do I get more information?
You can visit any one of our branches, send us an email to [email protected] or call us on 1800 864 864.
**WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rate quoted is based on $150,000 for a term of 25 years. Rates apply to secured loans only. 1. Interest rates effective 1 May 2017. All rates quoted are for new business. Rates quoted and all rates subject to change. Minimum loan amount is $25,000. For all fixed rate home loans, at the end of the fixed rate period the interest rate reverts to the Flexi Choice loan variable annual percentage rate. Any advice provided here does not take into consideration your objectives, financial situation, or needs, which you should consider before acting on any recommendations.
