he Greater Building Society still has lower home loan interest rates than the major banks and its other major competitors after passing on this week’s 0.25% increase in official interest rates by the Reserve Bank of Australia (RBA).
|
Lender
|
Standard Variable Rate %
|
|
Greater
|
6.55
|
|
Westpac
|
7.01
|
|
Commonwealth
|
6.86
|
|
ANZ
|
6.91
|
|
NAB
|
6.74
|
|
Newcastle Permanent
|
6.62
|
The Greater’s standard variable home loan rate will increase by 25 basis points (0.25%) to 6.55%. Its basic home loan will rise to 6.19%. Savings and investment rates will also rise, one by more than the official increase in rates. The Greater’s Bonus Saver Account will increase by 0.30% to 5.30%.
CEO Don Magin said that despite the continued high costs of sourcing funding the Greater has once again only passed on official increases in interest rates. This is unlike the major banks which, in previous months, have increased rates above those announced by RBA.
Mr 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.
“As our focus is on our members, rather than profits and returns to shareholders, 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 declining level of competition in the financial marketplace is allowing banks to increase rates above official levels,” he said.
“That is why the Greater has enlisted the support of Jerry Seinfeld to remind people that there are large, safe financial institutions, other than the major banks, that can meet their financial needs.”
“The Greater is leading the charge to introduce more competition and choice for consumers in regional Australia.”
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.”
The Greater’s new rates are effective from tomorrow (March 5, 2010) for new borrowers and from March 15, 2010 for existing borrowers.
Media information: Craig Eardley, ChurchComm, on 0437 477 493 or visit www.greater.com.au
