Bendigo Bank has announced it will decrease its residential variable interest rate by 0.20% p.a. to 5.48% p.a.
The Bank has also reduced the Bendigo investment variable rate by 0.15% p.a. to 5.76% p.a.
Bendigo and Adelaide Bank Managing Director Mike Hirst said the adjustment aims to find a fair balance for all of the Bank’s key stakeholders.
“When setting interest rates our Bank needs to consider many factors and carefully take into account the needs of our stakeholders including borrowers and depositors, shareholders, staff, partners and the broader community,” Mr Hirst said.
These historically low interest rates will also impact deposit holders. Mr Hirst noted the challenges the decrease will generate for those looking to earn money through investment in deposits.
“These customers remain front of mind for our Bank, and the rate reduction announced today seeks to strike the right balance between the needs of borrowers and depositors,” he said.
Customers on a residential variable interest rate with a $400,000 loan will see their repayments decrease by $50 a month (principal and interest home loan over 30 years).
The adjustment is effective 30 May 2016 for new and existing loans.
