Auswide Bank increases loan interest rates
Auswide Bank has announced an increase in interest rates on variable loans following the Reserve Bank of Australia’s (RBA) decision on Tuesday to increase the cash rate by 25 basis points.
From 17th May 2022, Auswide Bank will increase variable interest rates on existing home and business loans by 0.25%p.a.
Auswide Bank’s Low Rate Visa Credit Card will also increase by 0.25%p.a. from 1st June 2022 resulting in an interest rate of 8.30% p.a. on both purchases and cash advances. Managing Director Martin Barrett said the decision was made carefully following Tuesday’s official increase to the cash rate. He said the increase is in line with market predictions and comes off the back of inflationary pressures in the economy.
“Our customers are well placed to manage the increase having benefited from record low interest rates over the last few years where many are now in advance on their loan payments. Auswide also assesses new loan applicants on a higher sensitivity rate than our advertised interest rate, which assists our newer borrowers with their capacity to manage an increased commitment. Nonetheless where customers have questions regarding the rate changes on their loan or require help in making their payments, I encourage them to contact their local branch or call our Customer Hub on 1300 138 831.
Where customers have a new repayment commitment they will be advised by letter in advance of the next repayment due date. A customer’s applicable interest rate will also appear on their next loan statement received after 17th May 2022.