BankSA announces changes to interest rates
Wednesday, 21 June 2017
BankSA today announced an 8 basis points reduction in variable interest rates for new and existing customers paying principal and interest on their owner occupier home loans. This will take the standard variable rate for owner occupiers to 5.21% p.a.
BankSA has also adjusted interest only rates for variable home loans as follows:
- Owner occupier interest only will increase by 31 basis points 5.80% p.a.
- Investor interest only will increase by 34 basis points to 6.32% p.a.
- Portfolio loan will increase by 34 basis points to 6.44% p.a.
BankSA Chief Executive, Nick Reade, said this would provide a welcome boost for owner occupier customers who make principal and interest payments, enabling them to pay off their home loans faster.
“We also hope that our owner occupier customers with interest only home loans will be encouraged to switch to principal and interest repayments, assisting them to pay down their home loan in this low interest rate environment,” said Mr Reade, “and to support our customers to do this, there will be no switching fee.”
“We understand the impact of interest rate changes to our home loan customers, and try to balance the needs of both owner occupiers and investors.
“We are continuing to adjust our interest rates and lending policies to support meeting APRA’s benchmark on new interest only residential lending.”