More non-majors move on interest rates

by Miklos Bolza29 Mar 2017
Teachers Mutual Bank (TMB) and MyState have announced adjustments to their home loan interest rates in a move which follows a series of rate changes over the last two weeks.

TMB, along with subsidiaries Unibank and Firefighters Mutual Bank, has increased fixed rate home loans with one to five-year terms by seven basis points. This change came into effect last Friday (24 March).

The move represents the bank’s first changes to fixed home loan rates in 2017 and reflects changes in market conditions for interest rates both domestically and internationally, Steve James, chief executive officer for TMB, told Australian Broker.

“This small increase in rates still provides our members with a home loan rate that is highly competitive for the current market. Considered holistically, we continue to remain extremely competitive across a number of products, including our rates for 12-month term deposits and our 100% mortgage offset.”

Tasmania-based non-major bank MyState has also raised its rate for existing residential investors by 28 basis points.

“We have made this change in light of funding costs and regulatory factors, whilst ensuring we balance the need to remain competitive for both borrowers and depositors,” a bank spokesperson told Australian Broker.

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Non-major adjusts variable interest rates

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