Bank Australia today announced a suite of changes to its fixed term home loans, and variable and fixed rate commercial loans.
We will offer new fixed rate home loans for owner-occupiers paying principal and interest including:
- 0.1% cut to 1 year fixed home loans starting at 2.09% p.a.
- 0.2% cut to 2 and 3 year fixed home loans starting at 1.99% p.a.
- 0.6% cut to 5 year fixed home loans starting at 2.14% p.a.
Existing customers with a variable rate home loan who are considering switching to a fixed rate loan are encouraged to contact us to talk about their specific circumstances.
To support our small business, commercial and impact finance customers through the COVID-19 recovery we are also announcing:
- a 0.15% cut to variable rate commercial loans and overdrafts secured by residential or commercial security, or the Australian Government’s SME Guarantee Scheme.
- Offering new 1,2,3 and 5 year fixed rates commercial loans at 2.49% secured by residential or commercial security, or the Australian Government’s SME Guarantee Scheme.
Changes to all products listed above are effective from 25 November 2020.
With interest rates already at historic lows, we will hold our variable home loan rates at their current levels. This decision reflects both our cost of funding these loans, and the need to maintain fair and competitive rates for our depositors who rely heavily on interest income.
Balancing the needs of all our customers and ensuring the sustainability of the bank as we manage the combined impacts of very low interest rates and the COVID-19 pandemic remains our priority.
Throughout the COVID-19 pandemic we’ve offered extensive support to customers who have faced challenges and financial difficulty caused by the pandemic. This includes offering loan payment deferrals, moving to interest only repayments, debt consolidation and loan restructuring.
We encourage customers who are experiencing difficulty to get in touch to talk about their circumstances and how we can help.
On behalf of the entire Bank Australia team I thank you for your continued support.