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TMB reduces fixed and variable rates

by Hannah Dowling6 minute read
Teachers Mutual Bank Ltd

The mutual bank has announced reductions of between 10 and 25 basis points across its loan offerings for both owner-occupiers and investors.

Teachers Mutual Bank Ltd (TMB Ltd) – which includes Teachers Mutual Bank, UniBank, Health Professionals Bank and Firefighters Mutual Bank – has announced widespread rate reductions of between 10 and 25 basis points for fixed and variable home loan products.

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Rate reductions apply to both owner-occupier and investor products.

Fixed rates

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Fixed rate reductions are effective as of 16 October 2019, and the changes are as follows.

Owner-occupied, principal and interest repayments:

  • Two-year fixed rate - cut by 10 bps to 2.88 per cent (comparison rate 4.46 per cent)
  • Three-year fixed rate - cut by 20 bps to 3.28 per cent (comparison rate 4.41 per cent)
  • Four-year fixed rate - cut by 20 bps to 3.79 per cent (comparison rate 4.47 per cent)
  • Five-year fixed rate - cut by 20 bps to 3.79 per cent (comparison rate 4.41 per cent)

Owner-occupied, interest-only repayments:

  • Two-year fixed rate - cut by 10 bps to 4.09 per cent (comparison rate 4.68 per cent)
  • Three-year fixed rate - cut by 20 bps to 3.99 per cent (comparison rate 4.68 per cent)
  • Four-year fixed rate - cut by 20 bps to 4.43 per cent (comparison rate 4.69 per cent)
  • Five-year fixed rate - cut by 20 bps to 4.50 per cent (comparison rate 4.70 per cent)

Investor, principal and interest repayments:

  • Two-year fixed rate - cut by 10 bps to 3.28 per cent (comparison rate 4.53 per cent)
  • Three-year fixed rate - cut by 20 bps to 3.235 per cent (comparison rate 4.43 per cent)
  • Four-year fixed rate - cut by 20 bps to 4.05 per cent (comparison rate 4.51 per cent)
  • Five-year fixed rate - cut by 20 bps to 4.05 per cent (comparison rate 4.75 per cent)

Investor, interest-only repayments:

  • Two-year fixed rate - cut by 10 bps to 4.48 per cent (comparison rate 4.75 per cent)
  • Three-year fixed rate - cut by 20 bps to 3.99 per cent (comparison rate 4.60 per cent)
  • Four-year fixed rate - cut by 20 bps to 4.79 per cent (comparison rate 4.81 per cent)
  • Five-year fixed rate - cut by 20 bps to 4.79 per cent (comparison rate 4.81 per cent)

Variable rates

Additionally, variable rate reductions are effective as of 1 November 2019, and applicable for new and existing customers of TMB.

Variable rates across the board have been reduced by 13 bps for owner-occupiers and investors, apart from first home buyers, who have seen a reduction of 25 bps.

For owner-occupiers with a Solutions Plus P&I home loan, rates start at 3.48 per cent (comparison rate 3.74 per cent), and Solutions Plus IO loans start at 4.21 per cent (comparison rate 4.00 per cent).

Other owner-occupier variable rate changes include: 

  • Classic Home Loan P&I - cut by 13 bps to 3.29 per cent (comparison rate 3.34 per cent)
  • Flexi Choice Loan P&I - cut by 13 bps to 4.62 per cent (comparison rate 4.67 per cent)
  • Interest Only Variable - cut by 13 bps to 5.28 per cent (comparison rate 4.93 per cent)
  • My First Home Loan P&I - cut by 25 bps to 4.41 per cent (comparison rate 4.41 per cent)
  • My First Home Loan IO - cut by 25 bps to 4.41 per cent (comparison rate 4.41 per cent)

A range of investor home loans also saw the following rate cuts:

  • Classic Home Loan P&I - cut by 13 bps to 3.37 per cent (comparison rate 3.42 per cent)
  • Flexi Choice Home Loan P&I - cut by 13 bps to 4.62 per cent (comparison rate 4.67 per cent)
  • Interest Only Variable - cut by 13 bps to 5.32 per cent (comparison rate 4.95 per cent)

TMB Ltd noted that any approved applications for products that have seen rate changes will automatically be provided the new applicable rate on funding.

[Related: Heritage Bank drops floor rate]

TMB reduces fixed and variable rates
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Hannah Dowling

Hannah Dowling

AUTHOR

Hannah Dowling is a journalist for The Adviser and Mortgage Business.

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