The Greater Building Society has today moved to cut its two, three, four and five year fixed rates for its packaged home loan (Ultimate Home Loan).
Three year rates have been cut by 26 basis points to below five per cent (4.99 per cent). The Greater has cut 20 points from its two year rate to 4.79 per cent, 11 points off its four year rate to 5.49 per cent and 15 points from its 5 year rate to 5.64 per cent. The new rates will be effective Tuesday April 22.
The rate cuts ensure The Greater’s rates are lower than the rates on the major banks’ comparable packaged home loans. CEO Don Magin said the gap between the Greater’s rates and those of the big banks widens when comparison rates are used.
Mr Magin said people looking at a fixed rate home loan should be careful to avoid what he calls the “revert rate rort” where fixed loan customers are placed on a much higher or highest standard variable rate when the fixed loan term is over. The comparison rate factors in the revert rate as well as other bank fees and charges.
“With a home loan from the Greater Building Society you always revert to the lowest variable rate of the equivalent loan,” Mr Magin said.
The Greater’s Ultimate Home Loan is a packaged loan which includes a fee free transaction account, discounted insurance,financial planning, and a linked credit card with waived annual fee. Unlike many other financial institutions The Greater offers a redraw facility on its fixed rate home loans.
Mr Magin said the rate cut is part of The Greater’s continuous review of its loans to take competition up to the major banks and offer consumers a greater choice in loans with even better value. He said for people taking up or switching to The Greater’s Great Ratefixed loans (basic home loan) customers currently receive their choice of one of three holidays to either the Gold Coast, Fiji or a cruise in the Pacific.
The Greater is also currently waiving its loan establishment fee on all home loans.
The Greater offers a range of financial services to around 250,000 customers in NSW and South East Queensland.
Media information: Craig Eardley on 0437 477 493.