Greater Bank has confirmed today that it will increase its variable home loan rates by 0.25%p.a. following the move by the Reserve Bank of Australia (RBA) this week to increase the official cash rate.
Greater Bank Chief Executive Officer, Scott Morgan, said that while the rate change was imminent, it was important that they took the time to assess a range of factors and impacts to customers before confirming any changes.
“It has been over a decade since Australians have seen a rising interest rate market, so it was important that we explored a range of factors beyond the change to the cash rate, including impacts on our customers and the business, before confirming the rate change.”
Scott Morgan, Greater Bank Chief Executive Officer.
“Many customers have taken advantage of the record low interest rates and few repayment restrictions over the past two years and were finding greater value in paying additional money off their home loan."
“As a result, we now have around 75% of customers that are more than one month in advance on repayments.
“We will also increase our Term Investment rates for 1 to 5 year terms by 0.25%p.a. from Tuesday.
“We acknowledge that there may be some customers experiencing financial difficulty at this time and encourage anyone struggling to meet their home loan commitments to contact us to on 13 13 86 to discuss their options.”
The change in the official cash rate has provided some welcome news for depositing customers, with Greater Bank increasing Term Investment rates for 1 to 5 year terms by 0.25%pa. These rates will also be effective from 10 May.