page top


Home / About Us / News and Media / Latest News / Variable rate Home Loan changes

Variable rate Home Loan changes

Attention: open in a new window. Print

SERVICE ONE announced a 10-basis point increase to the majority of the SERVICE ONE Alliance Bank range of variable rate home loan products for Principal and Interest repayments only. This change impacts both owner occupied and investor rate variable loans. This change does not impact Interest Only loans, the Partial Offset rate or HomePlus equity loans. 

The following changes will take effect Thursday 26 July 2018 (unless otherwise indicated) and will be applied to existing loan products from this date:

Owner occupied

Loan type Old rate (% p.a.) New rate (% p.a.) Change
Standard Variable (index rate) 5.10 5.20 +0.10
- for loans under $50k 5.10 5.20 +0.10
- for loans between $50k and $249,999 4.60 4.70 +0.10
- for loans between $250k and $499,999 4.45 4.55 +0.10
- for loans over $500k 4.35 4.45 +0.10
Base Variable 4.70 4.80 +0.10
Pioneer Banking Package ($200k - $499,999) 4.50 4.60 +0.10
Pioneer Banking Package ($500k or more) 4.35 4.45 +0.10
Visa card secured by an owner occupied home loan (effective 1 August 2018) 5.35 5.60 +0.10


Loan type Old rate (% p.a.) New rate (% p.a.) Change
Standard Variable (index rate) 5.30 5.40 +0.10
- for loans under $50k 5.30 5.40 +0.10
- for loans between $50k and $249,999 4.80 4.90 +0.10
- for loans between $250k and $499,999 4.65 4.75 +0.10
- for loans over $500k 4.55 4.65 +0.10
Base Variable 5.20 5.30 +0.10
Pioneer Banking Package ($200k - $499,999) 5.00 5.10 +0.10
Pioneer Banking Package ($500k or more) 4.85 4.95 +0.10
Visa card secured by an investment home loan (effective 1 August 2018) 5.30 5.40 +0.10

Members with loans affected by these changes will receive correspondence confirming the change and how it impacts them.

General Manager - Banking, Tony Brown, provided some insight into the decision.

“as the market has been indicating, there has been consistent upward pressure on funding costs over the recent past and as a result Bendigo and Adelaide Bank has moved their variable rate loan rates. These changes have resulted in a subsequent review by SERVICE ONE Mutual Limited, and as a result, it has been decided to move variable rate SERVICE ONE Alliance Bank loans by 10 basis points,” Mr Brown said.

The variable loan rate increase equates to approximately an additional $20 in monthly loan repayments for a loan of $350k over 25 years.

Meet with a mobile banker

Our mobile bankers can come to you or chat with you over video call.

Book an appointment now

COVID-19 information

Our response, access to services and support available.

Find out more

Increased Risk through 3rd Party Apps

Providing access to your internet banking could make you liable for unauthorised transactions.

Find out more

Assistance Beyond Crisis (ABC)

ABC offers interest free loans for people who have experienced and left a domestic violence situation.

Find out more

2020 Do Good Annual

We're here to Do Good within our communities.

Find out more
Are you experiencing financial difficulty? Get financial assistance