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Rates announcement - Nov 2020

Bank of us today announced it will reduce home loan and residential fixed rates in response to the RBA’s recent cut to the official cash rate.

Bank of us today announced it will reduce home loan and residential fixed rates in response to the RBA’s recent cut to the official cash rate.

Both new and existing Bank of us customers will have the option to fix their home loan at a low rate of 2.29%p.a. (Comparison rate# 2.78%p.a.). In addition, investors can take advantage of a reduced residential investment fixed rate of 2.99%p.a. (Comparison rate# 4.69%p.a.). Both are available for up to 3 years, for lending up to 90% property value.

Fixing a loan interest rate can help to provide borrowers with some certainty in uncertain times said Bank of us CEO Paul Ranson.

“We have reduced our fixed loan interest rates so that Tasmanian’s can have peace of mind about their loan repayments, even if they are borrowing up to 90% of the property value,” said Mr Ranson.

“We know that some customers will expect the RBA cash rate reduction to flow through to all our lending interest rates, however, the cash rate is only one of the many factors we have to consider when making a change to interest rates.

“In this low interest rate environment, we must balance both our borrowers’ and depositors’ expectations, as well as the sustainability of our business. With this in mind, we have made no changes to our variable rates for the time being,” Mr Ranson said.

Bank of us CEO Paul Ranson said the bank’s variable rates remain among the most competitive in the market.

“Our FlexiDiscount home loan variable rate remains competitive in the market at 2.79%p.a. for lending up to 80% Loan to Value Ratio.” [Comparison rate# 2.81%p.a.]

“Yet, we know that times have been tough for many Tasmanians. If you are experiencing hardship or would like to chat about your current loan arrangements with us, we encourage you to call our Contact Centre team on 1300 306 716.”

The new fixed rates are available from 23 November 2020. For full Bank of us home loan interest rates visit www.bankofus.com.au/home-loan-interest-rates

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.