My Credit Union

Further decreases to variable rate home loans and other rate changes

Thursday, 11 July 2019 12:00


SERVICE ONE today announced it will pass on a further 20 basis point decrease to variable rate owner occupied home loans and 15 basis points for variable rate residential investment property home loans. HomePlus equity line-of-credits remain unchanged. These decreases will apply to both new and existing loans.

The decreases will become effective Tuesday 30 July 2019 (unless otherwise indicated) and the changes for loans with principal and interest repayments are as follows:

Loan type Current rate (% p.a.) New rate (% p.a.) Change (% p.a.)
Standard Variable ($500k or more) OO 4.00 3.80 -0.20
Standard Variable ($250k - $499,999) OO 4.10 3.90 -0.20
Standard Variable ($50k - $249,999) OO 4.25 4.05 -0.20
Standard Variable (less than $50k) OO 4.75 4.55 -0.20
Visa card secured by an OO home loan (effective 1 August 2019) 4.75 4.55 -0.20
Standard Variable ($500k or more) I 4.18 4.03 -0.15
Standard Variable ($250k - $499,999) I 4.28 4.13 -0.15
Standard Variable ($50k - $249,999) I 4.43 4.28 -0.15
Standard Variable (less than $50k) I 4.93 4.78 -0.15
Visa card secured by an I home loan (effective 1 August 2019) 4.93 4.78 -0.15

OO = Owner Occupied, I = Investment

Rates on loans with interest only repayments will also decrease as per the above margins based on the borrower profile (owner occupied or investment).

Existing borrowers on non-standard or negotiated rates and loan products other than the above including more recent headline offers will have their rate reduced ranging from 0.10% to 0.20%. 

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

SERVICE ONE Chief Executive, Matthew Smith, provides some insight when it comes to determining these more recent rate reductions.

"We’re pleased to pass on yet another significant decrease to the bulk of our home lending portfolio. As a result of these further decreases, borrowers on an owner occupied Standard Variable loan of $400k over 25 years with principal and interest repayments will save approximately $530 over the course of a year. 

"And again, I'd like to remind all of our borrowers that we don’t automatically reduce the loan repayments unless you request it. If you can afford to maintain your current repayments, we encourage you to as this will give you an opportunity to get ahead on your loan and potentially pay off the debt sooner. 

"As with all pricing decisions we need to take into consideration several factors - the operating environment, market expectations as well as the impact on SERVICE ONE depositors and the organisation's revenue. We know we provide a great value lending option and that's why with the last two RBA cash rate cuts, we've passed on 45 of the 50 basis points to the majority of our borrowers," Mr Smith explains.

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 Monday 15 July 2019, the following rate changes to the Senior Saver Account will apply:

Balance tier Current rate (% p.a.) New rate (% p.a.) Change (% p.a.)
$1 - $1,999 0.40 0.20 -0.20
$2,000 - $48,599 1.00 0.50 -0.50
$48,600 + 1.70 1.20 -0.50

If you have any questions regarding these changes, phone 1300 361 761 or visit any SERVICE ONE Branch.