Bank of us announces "history making" fixed rate

by Madison Utley01 Jul 2020

A non-major bank has announced a record low fixed rate for new lending of 1.99%.

Tasmanian-based, customer owned Bank of us introduced the “history making” special yesterday, with CEO Paul Ranson expressing hope the offer can help ease some of the challenges being facing across the island and provide customers “peace of mind” in knowing exactly how much their repayments will be each month.

“At times like these, we know that Tasmanians have enough to worry about,” said Ranson.

The interest rate special is available for 1-, 2- or 3-year terms up to 90% property value on the Bank of us FlexiDiscount Home Loan product.

“People are often hesitant to take on a fixed rate as they worry that they’ll be stuck with a high standard variable reference rate at the end of the fixed rate term,” said Ranson.

“Well at Bank of us, we do things a little differently, by offering loan revert rates that mirror our best rates in market, dependent on the loan to value ratio.

“With this in mind, we’ve gone ahead and reduced our FlexiDiscount variable rate for lending below 80% property value by 10bps to a competitive 2.83% with a comparison rate# of just 2.85%.”

The fixed rate special went live on 30 June 2020 and is available for a limited time.

Bank of us was established in 1870 as a building society around the singular goal of providing housing finance to Tasmanians in order that they could own their own homes.

“Fast forward to today and we’re in an enviable position where we can hold true to our original purpose by providing competitive banking products and services – that have been designed by Tasmanians for Tasmanians,” Ranson concluded.