Teachers Mutual Bank is increasing home loan variable and fixed interest rates by 0.10% per annum, effective from today for new business. It has 174,000 members and more than $5.3 billion in assets.
The changes are in response to higher cost of funds, and regulatory requirements on the mix of home loans.
Teachers Mutual Bank CEO Steve James stated that this small change to the variable rates is a necessary measure in the current low interest rate/higher cost of funds environment.
“As a mutual bank, our commitment to the long term stability and growth of the bank for our members drives every decision we make,” he said.
“While we have had to make a small interest rate increase, this is balanced by a range of benefits we offer. Our home loan fees remain lower than those of the major banks; and we offer fee-free redraw, no monthly fees, no fees for additional repayments, and no fees for paying a loan out early on variable rate products.”
“Our offset facility is available across the majority of our home loan products, something that is quite rare in the market,” said James.
The home loan variable and fixed interest rate change will be implemented across Teachers Mutual Bank’s three brands: Teachers Mutual Bank, UniBank, and Firefighters Mutual Bank.
The rate change will be effective for existing home loan borrowers from 1 July 2017
