Auswide Bank responds to third consecutive RBA cash rate increase

Auswide Bank will increase interest rates on existing variable loans following the Reserve Bank of Australia’s (RBA) decision to increase the cash rate by 50 basis points last Tuesday.

From 20 July 2022, Auswide Bank will increase variable interest rates on existing variable rate home, business and personal loans by 0.50%p.a.

There will be no change to Auswide Bank’s Low Rate Visa Credit Card interest rate of 8.30%p.a. which applies to both purchases and cash advances.

Selected term and on-call deposit interest rates are also being increased from 12 July 2022.

Chief Financial Officer, Bill Schafer said the increase in the cash rate had a considerable bearing on Auswide’s funding costs.

“While more cash rate increases are forecast this financial year, we take some comfort that during a period of record low interest rates, many of our existing customers have built a buffer by making additional or higher repayments and are well in advance of their scheduled repayment commitment.”

"As we stated in May and June, all Auswide Bank’s new loan applicants are assessed on a rate that is higher than our advertised interest rates so this also provides a margin of comfort that they will have some capacity to absorb these increases. Of course, we are standing by to help any customers that need it.”

Where customers have a new repayment, 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.

Mr Schafer said that despite the recent increases, Auswide has continued to experience steady demand for new loans. “This is driven by continued buoyancy in the Queensland housing market, our market leading product features and our commitment to service.”