Greater Bank will reduce variable interest rates across a number of lending products by 0.25% in line with the reduction in the official cash rate announced today by the Reserve Bank of Australia (RBA).
The change will be made to variable base rate for Owner Occupied loans, Investment loans and Business loans and will be effective from Tuesday 11 June 2019.
This reduction in interest rates follows the customer-owned bank’s announcement in May that it would increase its variable rate by 0.10% from 15 May. This change was deemed necessary to balance the needs of all our customers, both depositors and borrowers.
However, following today’s decision by the RBA, Greater Bank Chief Executive Officer, Scott Morgan, said they would now move quickly to pass on the full 25 point reduction to borrowing customers.
“There has been speculation recently about the prospect of a reduction in the official cash rate by the RBA, which is a significant factor when considering changes to our interest rates, but certainly not the sole factor,” Mr Morgan said.
“Costs associated with funding and servicing loans, ensuring we continue to meet regulatory responsibilities, as well as balancing the interests of both Greater Bank’s borrowers and depositors have to be considered.
“We will watch with interest now as other financial institutions move on interest rates and by how much. We are confident that Greater Bank remains very competitive in the market, especially against the major banks”.
This decrease will see the scheduled monthly repayments for a $150,000 housing loan over 30 years decrease by $21 per month.