Author: Craig Eardley

Greater cuts variable home loan rates AND fixed rates cut twice in one week

The Greater Building Society has today announced it is cutting its variable home loan rates by 0.25%. It is also cutting fixed rate home loan rates, for the second time in a week, by as much as 0.5 per cent for a five year loan.

The Greater’s Ultimate Home Loan (packaged variable loan) rate will be 4.69 per cent down from 4.94 per cent. Its popular Great Rate (basic variable loan) rate will now be under 5 per cent. The new rate will be 4.89 per cent down from 5.14 per cent. Its standard variable rate will be 5.25 per cent, down from 5.5 per cent. (Even with a 0.28 per cent cut, Westpac’s standard variable rate is 5.70 per cent.)

Fixed rates are again being cut by The Greater. Its one year packaged rate is now below 4 percent (3.99 per cent). Two, three, four and five year rates have been all cut to 4.29 per cent. These cuts follow cuts made to these fixed rates on January 30. These combined cuts to fixed rates means the Greater has cut by as much as 0.5 per cent. Its five year fixed package home loan was 4.79 per cent this time last week.

Existing customers will have the new variable home loan rates applied on February 20.

CEO Scott Morgan said The Greater led the cuts prior to the RBA meeting and is cutting rates again to ensure its stays ahead of the big banks to offer people a greater way of banking.

He again warned consumers taking out any fixed rate home loans to check the loan features particularly the rate that the loan will revert to once the fixed rate period is over.

“Some financial institutions have high variable rates and some place you on a higher than usual variable rate once your fixed term ends, a practice we call the “revert rate rort”, Mr Morgan said.

“At The Greater, we’re straightforward with our customers so our packaged fixed rate loans revert to the low packaged variable rate,” he said.

The Greater’s packaged (Ultimate) home loan has no establishment fee and includes a fee free transaction account, discounted insurance, a free initial financial planning consultation, and a linked credit card with waived annual fee. Unlike many other financial institutions, The Greater offers a free internet redraw facility on its fixed rate home loans and the ability to make extra repayments.

People wanting more information or to apply for a loan should visit a Greater branch, phone 1300 721 253 or make an enquiry online. The NSW based Greater offers home loans as well as other banking and financial services to around 250,000 customers in NSW and South East Queensland.

Media information: Craig Eardley on 0437 477 493.