Understanding RBA cash rate and its impact on home ownership
Greater Bank will also increase rates for a range of deposit account this month. Notably, the popular three-month Term Deposit rate will increase to 1.60%p.a. and depositors willing to invest for longer terms can earn up to 4.00%p.a.
Additionally, Life Saver account holders will receive a 50-point increase to 1.50%.
These rate changes for loans and Term Deposits will be effective from Wednesday, 14 September.
Greater Bank CEO, Scott Morgan, said that it was their customer-first philosophy that has driven the recent rate change.
“As a customer-owned bank, we operate to assist our borrowers pay off their housing loan sooner. This customer-first philosophy is paramount when making decisions around any interest rate changes,” Mr Morgan said.
“There is no doubt that movement in the official cash rate is a key factor in our pricing changes, however, it’s important that we take a holistic approach and consider the impacts on the business, our regulatory requirements, and critically, our customers,” Mr Morgan said.
“We acknowledge that these are challenging times for a number of our home loan customers, particularly those who took out a loan at the bottom of the cycle, which is why we have taken this opportunity to hold back some of the rate rise.
Scott Morgan, Greater Bank CEO
“Despite these most recent changes that will come into effect from next week, our customers remain well placed to manage through this period of unprecedented interest rate changes, with around 75% more than one month in advance on repayments.”
Mr Morgan said that any customers experiencing financial difficulty at this time and are struggling to meet their home loan commitments are encouraged to contact Greater Bank on 13 13 86 to discuss their options.
