Following this week's announcement from the Reserve Bank of Australia to reduce interest rates, bcu, the member owned financial services institution has committed to passing on the latest RBA interest rate cut of 0.25% p.a. to their Owner Occupied Standard Variable Rate, Owner Occupied Maximum Discounted Variable Rate, Investment Standard Variable Rate and Investment Maximum Discounted Variable Rate.
The local lender will also be providing rate reductions to their commercial loan members and those members who have an Owner Occupier OMG or an Investment OMG loan. These members’ rates will be reduced by 0.20% p.a..
bcu CEO, Alan Butler said, "It is very pleasing to be able to pass on as much of the RBA rate cut as possible. When making these decisions we always look to balance the interests of both borrowers and depositors to provide a level of fairness to all our members".
As a result of the last two interest rate cuts, all members with an Owner Occupier variable rate home loan will receive a total rate reduction between 0.45% p.a. and 0.50% p.a..
Mr Butler said, “These are meaningful changes for our members. The effect of these two recent rate cuts will result in a typical homeowner who borrows $350,000 now and repays the loan over 30 years being on average more than $1,000 a year better off".
Statistics released in June 2019 by The Australian Prudential Regulation Authority show that over the past 12 months more and more Australians are choosing customer owned banks as their preferred home loan provider. Mr Butler encourages everyone in the region to dig out their home loan details to make sure that they are getting the best possible deal and that their lender is not penalising them with a higher rate than what a new customer would receive.
From 1 August 2019, the interest rate reductions will be effective for both new and existing customers.