Local lender bcu responds to RBA interest rate cut
bcu, the member owned financial services institution has committed to passing on the latest Reserve Bank of Australia's (RBA) interest rate cut of 0.25% p.a.to the following products:
- Owner Occupied Standard Variable Rate
- Owner Occupied Maximum Discounted Variable Rate
- Investment Standard Variable Rate
- Investment Maximum Discounted Variable Rate
bcu 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..
"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," bcu CEO Alan Butler said.
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..
"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."
"By keeping repayments the same, this is a great opportunity for existing borrowers to get ahead with their mortgage repayments and hopefully pay their loan off sooner. With rates this low it also makes buying a house more affordable and may bring more people into the home owning segment, something that all of us at bcu are very proud of."
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 August 1, 2019, the interest rate reductions will be effective for both new and existing customers.