Following the recent RBA decision on interest rates, Police Bank will decrease its variable interest rate mortgages by 0.15%,1 taking our home loan rates to record lows. The rates are as follows:
- Goldrate Home Loan will decrease from 4.19% to 4.04%
- Police Value Home Loan will decrease from 4.57% to 4.42%; and
- Premium Variable Home Loan (owner occupied) will decrease from 4.89% to 4.74%.
We are also decreasing our 3 years fixed rate home loan to 3.89%p.a.
In determining its response to the RBA decision, Police Bank has taken the responsible position of ensuring interest rates remain competitive for both depositors and borrowers. Police Bank have also taken the prudent position of ensuring its pricing of interest rates on deposits and loans generate sufficient earnings on behalf of its Members.
Police Bank is 100% Member owned and our earnings enables Police Bank to remain strong and invest in new technology, initiatives, support of the Police community and improved Member services for the benefit of all our Members.
Still Lower than the banks
It is important to note that all of our variable Home Loans still position Police Bank below the Big Banks, even with their most recent rate reductions factored in:
|Bank||Current Rate||Cut||New Rate|
|Police Bank – Goldrate^||4.19% p.a|
4.26% p.a Comparison rate*
4.11% p.a. Comparison rate*
|Commonwealth Bank – Standard Variable||5.35% p.a||-0.13%||5.22% p.a.|
|NAB – Tailored Standard Variable||5.35% p.a||-0.10%||5.25% p.a.|
|ANZ – Standard Variable||5.37% p.a||-0.12%||5.25% p.a.|
|Westpac – Rocket Repay Standard Variable||5.34% p.a||-0.14%||5.20% p.a|
Why our Members Continually Benefit
It is good to keep in mind that some banks do charge a monthly service fee on their home loans in the range of $8 to $10 and savings account offset fees which in effect does raise their interest rates. Police Bank has no account keeping fees on its Goldrate, Premium or Police Value Home Loan products. Plus both the Police Value and Premium home loan product qualify for our Reduced Fees Program to reduce (or even eliminate) fees and charges.
1. Effective for new business on 17 August 2016 and existing business on 19 September 2016.
^ To be eligible for the Goldrate Home Loan, you must have a Police Bank Visa Credit Card with a minimum approved limit of $2500, an S8 Online SuperSaver Account, whole of pay to Police Bank prior to loan funding. Minimum loan amount is $50,000. Existing Police Bank borrowers must borrow minimum $50,000 additional funds to be eligible. Not available where the amount of the loan exceeds 80% of the value of the security property, as determined by the Bank. Not available for investment purposes. Terms and conditions apply and are available on request. Fees and charges and lending criteria apply.
* The comparison rate is based on a loan of $150,000 over a 25 year term. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.