Bank of us today announced it will cut lending rates by 15 basis points in response to the recent RBA decision to reduce the official cash rate.
Bank of us CEO Paul Ranson said the Tasmanian customer owned bank’s rates remain among the most competitive in the market.
“We are committed to keeping home loan interest rates as low as possible for our borrowers,” said Mr Ranson.
“As a small customer owned bank, we must balance the interests of both borrowers and depositors, together with the increased cost of operating our business, in order to remain sustainable.”
Mr Ranson said earlier in 2019, Bank of us made the conservative decision to only pass on a small increase to our borrowers unlike some of the bank’s competitors.
“Our aim is to remain competitive in the long term, not just the short term.”
The rate reduction will flow on to all Bank of us owner occupied variable home loans including the low rate, no frills FlexiDiscount product said Mr Ranson.
“Our Flexidiscount home loan product remains competitive in the market at 3.73%p.a. (comparison Rate 3.75%#p.a.) for lending with a less than 80% Loan to Value Ratio.
Mr Ranson said the revised rates apply from 1 July 2019 for new lending and from 1 August 2019 for existing loans.
The small, small print: #The comparison rates are calculated on the basis of a secured loan of $150,000 over a term of 25 years. WARNING: These comparison rates apply only to the examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers or loan offset accounts, are not included in the comparison rate, but may influence the cost of the loan.