Interest rate update
We’re making changes to our lending interest rates effective 23 May 2023. Home, residential-investment and commercial loan variable interest rates will increase by 25 basis points (0.25%p.a.) for existing borrowers.
Customers will be notified of their new loan repayments by letter.
The decision to increase lending rates is in response to the RBA increasing the cash rate at its May meeting but we consider several factors including balancing the interests of both our borrowers and depositors and ensuring the Bank’s financial sustainability.
Bank of us CEO, Paul Ranson said, “There are encouraging signs that inflation is declining, however it is still above the RBA’s target range so it’s possible more rate increases will occur.”
Impact on Tasmanians
“Rising interest rates have resulted in softer market demand for housing finance, with total demand in Tasmania down 6% over the past 12 months. Despite the lower market demand, Bank of us continues to grow strongly, supported by customer interest in the new MyHome shared equity program,” said Mr Ranson.
“As rates rise and loan servicing becomes more challenging, MyHome is becoming increasingly attractive as Homes Tasmania’s shared equity contribution reduces the servicing requirement for a borrower.”
“We remain confident in the performance of our loan book”.
“Overall our customers are in good shape but we’re mindful of the impact on Tasmanians as living costs continue to rise. Despite a strong economy, some people are finding it more difficult to manage their finances. We understand it’s tough and encourage customers to get in touch early if they’re worried about repaying their loan.”
Getting in touch
Customers can call the Bank of us team on 1300 306 716 or visit one of our retail stores.
Check your repayments with our Home Loan Repayment Calculator
Tasmania's only customer owned bank, Bank of us has seven Retail Stores state-wide, 33,000 customers and $1.5 billion in assets.
Bank of us is the exclusive lender for the MyHome program.
