The Greater Building Society’s standard variable rate remains up to 46 points (almost half of one percent) lower than one of the major banks (Westpac) despite it passing on this week’s increase in official interest rates by the Reserve Bank of Australia.
The Greater’s Getaways Home Loan (standard variable home loan) rate will increase by 25 basis points (0.25%) to 6.8%. Its Great Rate Home Loan (basic home loan) will rise to 6.44%.
The new home loan rates are effective from Thursday (April 8) for new borrowers and from April 15, 2010 for existing borrowers.
Greater CEO Don Magin said lower home loan rates were one of the benefits for people taking out a home loan with a mutual financial institution like the Greater.
Mr Magin said that the focus for mutuals like the Greater is on its members, rather than profits and returns to shareholders.
“As a mutual we are able to offer a range of benefits like competitive interest rates, low fees and member rewards like free holidays,” Mr Magin said.
“The Greater is leading the charge of second tier financial institutions that are determined to introduce more competition and choice for consumers in regional Australia,” he said.
Mr Magin also urged consumers to check comparison rates when shopping around for a home loan and prevent higher rate rises by “voting with their feet”.
“As well as the interest rate, people should look at loan establishment fees, ongoing fees, and what other benefits their financial institution will provide them.”
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Rates as at Friday April 9, 2010
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Lender
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Standard Variable Rate %
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Greater
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6.80
|
|
Westpac
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7.26
|
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Commonwealth
|
7.11
|
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ANZ
|
7.16
|
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NAB
|
6.99
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Greater customers taking out a $250,000 Greater Getaways Home Loan (standard variable rate loan) will, for a limited time, be able to take a trip of a lifetime to Las Vegas for free. The trip includes: return economy class airfares for two people to Las Vegas; five nights accommodation; and two tickets to see Jerry Seinfeld live on stage at one of his October 22 or 23 shows at Caesars Palace.
Media information: Craig Eardley, ChurchComm, on 0437477493 or visit www.greater.com.au
