Teachers Mutual Bank Limited announces 0.25% interest rate reductions

Teachers Mutual Bank Limited today announced interest rate reductions for variable home loan members following the Reserve Bank of Australia’s latest decision to reduce the official cash rate by 0.25% to 3.85%.

Teachers Mutual Bank Limited will decrease variable home loan interest rates by 0.25% p.a. for new and existing members across Teachers Mutual Bank, Health Professionals Bank, Firefighters Mutual Bank, and UniBank. The change will be effective 1 June 2025.

Commenting on these changes, Teachers Mutual Bank Limited’s Chief Customer Officer, Greg Johnson said, “We are a proudly member-owned bank and our priority is delivering competitive interest rates for all our members.

“We know the decision to pass on this rate cut in full will be welcomed by our home loan members, many of whom work in the education, health, and emergency services sectors and who have been feeling the squeeze of cost of living pressures.” 

A member with a $500,000 home loan will save $80* per month on their repayments as a result of this reduction.

“We know that managing repayments is just one part of the household budget and some members may need further support. I urge any members requiring assistance to get in contact with us to discuss your options and how our solutions can be tailored based on your individual circumstances.

“For our savings customers, we continue to offer highly competitive deposit rates.  Our Essential Saver will offer a competitive rate of 3.75%^ every day with no special conditions, whilst our Term Deposits continue to be highly competitive.” 

* Based on a 30-year principle and interest owner occupied variable home loan
^Effective 1 June 2025