Rates announcement - 6 March 2020
Bank of us, announced today it will reduce interest rates by 25 basis points across its variable owner occupied and residential investment home loans and its business loans, in response to the Reserve Bank’s March cash rate decision.
“After a review of our products and pricing, we have decided to pass on the full 0.25% rate cut to our existing borrowers with variable rate home, residential investment and business loans,” Bank of us CEO Paul Ranson said.
“As the only Tasmanian customer owned bank, we understand that Tasmanians are facing uncertainty in the current economic climate and we have taken this into consideration when making our decision.
“We also recognise that, in this low interest rate environment, we must continue to balance both our borrowers’ and depositors’ expectations, and make sure that our business remains sustainable for the long-term, said Mr Ranson.
The rate reduction will provide to market Bank of us’s lowest ever new lending rates under its FlexiDiscount product said Mr Ranson.
“Our FlexiDiscount home loan product will reduce to a variable interest rate of 2.93%p.a. (comparison Rate 2.95%#p.a.) for a less than 80% Loan to Value Ratio and for borrowers that qualify for lending under the Federal Governments First Home Loan Deposit Scheme, a variable interest rate of 2.78% (comparison Rate 2.82%#p.a.).
Reduced lending rates for existing borrowers will be effective from 1 April with new lending available from 11 March 2020.
Bank of us also increased its 7 month term deposit rate to 1.85%p.a. earlier in the week.