MyState Bank lifts interest rates for home loan borrowers

Following the Reserve Bank of Australia’s (RBA) decision to lift OCR for the first time in more than 11 years, from a record low 0.1% to 0.35%, MyState Bank has announced that it will increase interest rates for home loan customers by 25 basis points, effective the May 19 for new loans and existing loans.

Huw Bough, MyState Bank’s general manager of banking, said MyState Bank is always focused on keeping interest rates competitive for both deposit and lending customers.

“We are announcing an increase to a number of term deposit rates,” Bough said. “We know many of our customers have built up significant savings over the past few years – it could be for a first home or funding their retirement. With low wage growth, our customers have worked hard to save. We want to make sure their savings work hard too. After 11 years without an interest-rate rise, some customers may not have previously experienced a rate rise, so we understand there may be many questions and concerns. However, as a responsible lender we strictly assess customers’ repayment capacity and include a serviceability buffer above current interest rates. Many of our customers are also ahead on their repayments, putting them in a better position to withstand an interest rate rise.”

MyState Bank offered some tips for its customers:

• Those with a variable rate owner-occupied or investment loan will be advised directly by MyState Bank of any changes to their rate and repayments this month
• Those currently making extra repayments that are the same as or more than their new repayment amount don’t need to do anything. By making extra repayments, they’re reducing the amount of interest they pay over the life of their loan
• Those who pay their loan by electronic transfer will need to update their repayment amount via online banking
• Those with a direct debit set up from a nominated bank account should check their direct debit details to make sure they’re still meeting their new minimum repayment amount
• Those whose loan account has been credited directly should inform their employer of their new repayment details to reflect their new minimum repayment

For questions, customers can send MyState Bank a message via internet banking or contact its customer care team at 138 001.