Interest rate news
Changes to our variable interest rates
Effective on 23 August 2016, BankSA will reduce interest rates across a range of variable lending products for home owners.
- Variable home loan (owner occupier) rate reduced by 0.13% to 5.29% per annum for customers with principal and interest repayments (comparison rate 5.46% per annum*);
- Variable home loan (residential investment) rate reduced by 0.13% to 5.54% per annum for customers with principal and interest repayments (comparison rate 5.71% per annum*);
- Variable home loan (owner occupier) rate reduced by 0.09% to 5.33% per annum for customers with interest only repayments (comparison rate 5.50% per annum*);
- Variable home loan (residential investment) rate reduced by 0.09% to 5.58% per annum for customers with interest only repayments (comparison rate 5.75% per annum*); and
- Portfolio variable home loan rate reduced by 0.09% to 5.63% per annum.
This reduction takes BankSA’s home loan rates to historical lows and reflects the complex domestic and international environment banks are facing.
We are also offering lower interest rates to customers who make interest and principal repayments to encourage them to pay down their debt and own their home faster.
Switching from interest only to principal and interest repayments
If you are currently paying interest only repayments, you would have received a letter in July about a change to your reference rate name to better reflect your repayment type. This is effective August 2016.
Your new reference rate will be included in this reduction and the interest rate you pay will be reduced by 0.09%.
If you wish to move from interest only repayment to principal and interest repayment, you can do so without paying a switch fee until 30 September 2016. Customers with Advantage Package can switch at any time at no additional cost.
If you think it might be time to switch, speak to one of our home loan experts on 13 13 76 or drop by any BankSA branch.
Impact on my repayments?
Variable Interest Rate Home Loans
If you are currently paying principal and interest repayments on your home loan
Following an interest rate change, your contractual repayments are adjusted. You will receive a letter that will detail both your new minimum monthly repayment amount and the date the new repayment commences, ensuring you have time to adjust arrangements.
If you are currently paying interest only repayments (Interest Only Home Loan)
Your repayments are adjusted automatically. The repayments will change from the first repayment date after the interest rate change becomes effective.
Fixed Interest Rate Home Loans
Your repayments are not affected by interest rate changes during the fixed period of your home loan
*Comparison rates are based on a loan of $150,000 over a term of 25 years.
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.