Teachers Mutual Bank, UniBank and Firefighters Mutual Bank have dropped their interest rates for several home loans, including interest-only, by up to 30 basis points.
The mutual banks, owned by Teachers Mutual Bank Limited, have dropped the variable interest rate to 3.84 per cent (3.89 per cent comparison) for new borrowers taking out an owner-occupier loan of more than $150,000 (and up to $1 million).
Fixed rates across a number of home loan products have also been cut for all brands: two-year fixed rate home loans will drop by 15 basis points to 3.69 per cent per annum (p.a.), four and five-year fixed rate home loans will be reduced by 22 basis points to 4.36 per cent p.a. and 4.49 per cent p.a., respectively.
These fixed rate changes will affect new business for owner-occupier on principal and interest payments.
Following on from its interest-only rate hike earlier this year, the group has announced that it will be reducing the rates on these loans by an equivalent to 4.38 per cent p.a for two-year terms, 4.76 per cent p.a. for four-year terms and 4.89 per cent p.a. for five-year terms.
Teachers Mutual Bank Limited’s head of third-party distribution, Mark Middleton, said: “We always seek to provide some of the most competitive rates on the market, and these new rates achieve that aim.
“Our third-party channels are a strong area for business growth for us, and our engagement with the broker community will be a continued focus as we grow our portfolio and our brands over the next year. These rate changes are a positive step in building that growth.”
These rate changes follow Teachers Mutual Bank Limited’s recently announced annual results, which highlighted the brand’s strong home loan performance, with first and third-party lending growing by a total of 19.23 per cent in 2016–2017.