Teachers Mutual Bank Limited announces changes to fixed-rate home loan products
7 April, 2020
Teachers Mutual Bank Limited has announced a decrease to a number of its Owner Occupier and Investor fixed-rate home loan products effective today, 7 April 2020.
New P&I Owner Occupier loans start from 2.19% and Interest Only Owner Occupier loans start from 2.34%. For Investors, P&I loans start from 2.34% and Interest Only loans from 2.49%.
Mark Middleton, Teachers Mutual Bank Limited’s Head of Third Party Distribution said: “As a mutual bank, we are constantly reviewing our processes and our offering in the market in order to identify opportunities to help our business partners and the overall community. This core value is heightened by the challenging times we are currently facing.
“We have made a decision to cut interest rates on our popular fixed-rate home loan products to our lowest advertised interest rate ever – 2.19% p.a. fixed for a one year term and 2.14% for two and three year terms for owner occupier customers on principal and interest repayments. This offer will allow customers to lock in historically low rates and hopefully make a difference to their household budgets in trying times.”
The new rates are available to new home loan customers, as well as existing customers currently on a variable rate, or whose fixed-rate term has matured.
Applicants that have applied for any of the adjusted fixed-rate home loan products who have been approved and not yet funded will automatically receive the new applicable rate on funding.
In the interest of balancing the needs of both borrowers and depositors, Teachers Mutual Bank Limited has opted not to reduce the interest rates on its savings accounts and term deposits. Instead the Bank has held them at the same competitive level while cutting fixed-rate home loan products.
Teachers Mutual Bank Limited has recently announced enhancements to its upfront commission model. The Bank will now pay a top-up commission on the difference between the current loan account balance (net of any offset) and the loan account balance used in the initial upfront calculation of the loan, provided that the movement is greater than or equal to $20,000. Further to this, the Bank announced a financial assistance package for members affected by COVID-19. As part of this package, Teachers Mutual Bank Limited confirmed it would honour trail commissions for brokers in respect of clients who have been granted Financial Hardship.
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