G&C Mutual Bank has undertaken a comprehensive review of interest rates charged on our home loans and paid on our savings/deposit products. With home loan rates already at historic lows our priority at G&C has been to implement equitable rate changes that strike a fair balance between the competing needs of our borrowing and depositing members.
Although the extreme low rate environment is great news for home loan borrowers, we are very mindful that the vast majority of G&C members (around 90 percent) do not have a home loan. Many of our members are still saving to fund a deposit for their first home, while others are already in retirement or semi-retirement and are suffering reduced income due to the unprecedented falls in interest rates.
In order to accommodate these competing member needs, G&C has reduced the rates on all of our fixed and variable home loan products while also maintaining competitive rates on our most popular savings and deposit products.
Home Loan Rate Changes
Notwithstanding the historic low interest rates, we recognise that first home buyers are still struggling to enter the housing market and for that reason G&C has decided to give particular priority to those borrowers by reducing the annual interest rate on our First Home Premium Package by 0.50 percent to a record low of 2.79 percent. This rate applies to new loan applications made after 2 October 2019 and to existing First Home Premium Package borrowers with effect on 1 November 2019.
The interest rates on all other G&C variable rate home loans (for both owner occupier borrowers and home loan investors) have been reduced by 0.15 percent p.a. - with effect on 8 October 2019 for new loan applications and 1 November 2019 for existing borrowers. These rate reductions apply to both “interest only” and “principal and interest” product types.
The rates on G&C’s 1-5 year fixed rate home loan products have been reduced by between 0.10 percent - 0.50 percent p.a. (effective 8 October 2019), with the interest rate on our most popular 2 year fixed rate for owner occupier borrowers (with principal and interest repayments) being reduced by 0.50 percent p.a. to a new annual interest rate of 2.99 percent.
Details of the above rate reductions to our entire suite of home loan products can be found on our website or, for existing borrowers, can be viewed on your next statement of account or via internet banking.
Savings Rate Changes
G&C’s new savings and term deposit rates can be viewed on our website on the Rates & Fees page. Although it has been necessary to lower the rates on most G&C deposit products in order to cover the cost of the loan rate reductions, at 1.85 percent p.a. the new upper tier rate on our popular Pension Plus savings account remains attractive compared to similar products available from other banks.
The new rates on G&C’s savings products will take effect on 9 October 2019, with the exception of changes to our Bonus Saver accounts which will take effect on 1 November 2019.
If you require any further information about the impact of the above rate reductions, please refer to our website or contact us.