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Decreases to variable rate home loans and other rate changes

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Today it was announced SERVICE ONE will pass on a further 15 basis point reduction across the range of variable rate home loans - for both owner occupiers and investors, and includes those borrowers on Interest Only repayments. This reduction will also apply to line-of-credit home loan options.

These decreases will become effective Friday 18 October 2019 (unless otherwise indicated) and include the following for loans with principal and interest repayments:

Loan type Current rate (% p.a.) New rate (% p.a.) Change (% p.a.)
Standard Variable ($500k or more) OO 3.80 3.65 -0.15
Standard Variable ($250k - $499,999) OO 3.90 3.75 -0.15
Standard Variable ($50k - $249,999) OO 4.05 3.90 -0.15
Standard Variable (less than $50k) OO 4.55 4.40 -0.15
HomePlus line-of-credit OO 5.10 4.95 -0.15
Visa card secured by an OO home loan (effective 1 November 2019) 4.55 4.40 -0.15
Standard Variable ($500k or more) I 4.03 3.88 -0.15
Standard Variable ($250k - $499,999) I 4.13 3.98 -0.15
Standard Variable ($50k - $249,999) I 4.28 4.13 -0.15
Standard Variable (less than $50k) I 4.78 4.63 -0.15
HomePlus line-of-credit I 5.90 5.75 -0.15
Visa card secured by an I home loan (effective 1 November 2019) 4.78 4.63 -0.15

OO = Owner Occupied, I = Investment

Borrowers with loans affected by these changes will receive correspondence confirming the change and how it impacts them. And if borrowers are in a position to maintain current loan repayments, this is encouraged as it will provide an opportunity for borrowers to get ahead on their loan and potentially pay off their loan sooner. Otherwise, they can request SERVICE ONE to apply the minimum repayment amount based on the new, lower rate.

Being mindful that many lenders have come under scrutiny for not passing on the rate cut in full, SERVICE ONE Chief Executive wanted to provide some insight behind this decision.

"With these historical low rates, we’re in unchartered territory here in Australia. Pricing decisions for loans is now more complex than ever and it is really about achieving a balance between borrower expectations and maintaining a competitive position but also being mindful of the challenging market conditions, organisational performance and the needs of depositors," Mr Smith said.

"Make no mistake though, we remain a competitive option for borrowers, having passed on 60 of the 75 basis points the official cash rate has been cut by since mid-year to the majority of our borrowers. And we’ve maintained a lower Standard Variable Rate than the major banks for a few years now."

Any SERVICE ONE borrower experiencing financial hardship or wanting to discuss their home lending arrangements in more detail should phone 1300 361 761 or visit their local Branch. 

Effective Tuesday 15 October 2019, the following rate changes will apply to deposit accounts:

Money Management Account

Balance tier Current rate (% p.a.) New rate (% p.a.) Change (% p.a.)
$0 - $4,999 0.00 0.00 No change
$5k - $19,999 0.10 0.10 No change
$20k - $49,999 0.40 0.25 -0.15
$50k - $99,999 0.50 0.35 -0.15
$100k - $249,999 0.75 0.50 -0.25
$250k + 0.95 0.75 -0.20

Christmas Club Account

Current rate (% p.a.) New rate (% p.a.) Change (% p.a.)
0.60 0.40 -0.20

Senior Saver Account

Balance tier Current rate (% p.a.) New rate (% p.a.) Change (% p.a.)
$1 - $1,999 0.20 0.10 -0.10
$2,000 - $48,599 0.50 0.25 -0.25
$48,600 + 1.20 0.95 -0.25

For any questions relating to these changes, phone 1300 361 761 or visit any SERVICE ONE Branch.

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