A recent entrant into the broker channel has today announced a 0.39% reduction on its 3-year fixed rate home loan.
Teachers Mutual Bank announced the reduction today to what it says is a “market-leading” 4.49%.
It has also reduced its 2-year fixed rate by 0.10%, down to 4.69%.
All upfront application fees will also be waived on any new loans, fixed or variable. This represents a saving of around $750 to home loan applicants, says Mark Middleton, national manager third party distribution at Teachers Mutual Bank.
“These rate reductions mean we’re offering strongly competitive rates with the security of fixed interest,” says Middleton.
The mutual bank announced its entrance into the broker channel just three months ago, partnering initially with Connective and eChoice.
“This rate reduction supports our statement when we launched our broker channel last year, that we would be coming up with highly competitive solutions for the market. This is our commitment to aggregators and brokers already accredited with us – watch this space.”
With the Reserve Bank’s February decision to keep rates on hold, official interest rates have remained unchanged for the last 6 months. Commentators are predicting no further falls in the official rate, and the possibility of a rate rise towards the end of the year.
“At Teachers Mutual Bank our aim is always to provide our members with the best value home loan rates. Given the predictions by some that rates will start to climb later this year, these fixed rate home loans represent an opportunity to lock in an excellent rate now, whether entirely fixed, or part-fixed, part-variable,” says Middleton.
The mutual bank services around 600,000 members of the education sector, including teachers, school staff and their families.
The rates are effective today 13th February 2014, for new loans.