Wednesday, 21 February, 2018
Newcastle Permanent has announced changes to interest rates applicable to variable rate investment loan products, effective from Monday, 26 February 2018.
From Wednesday, 21 February investment loan customers will be personally notified about the impending interest rate change, and in early March these customers will then receive a letter advising their new minimum monthly repayment amount. To allow customers time to budget, their new repayment amount will not become effective until April 2018.
Newcastle Permanent CEO Terry Millett made the following comments.
"As a result of a thorough assessment of our investment lending rates in comparison to our competitors, and in order to remain competitive in the market, our investment loan variable interest rates will increase by 0.30% p.a. effective from Monday, 26 February 2018. The increase of 0.30% p.a. changes a customer’s repayments by approximately $19 per month for each $100,000 of their loan balance, based on a 30 year loan term.
"Even after this interest rate announcement, our investment loan variable rates remain some of the most competitive in the country.
"There’ll be no increases to fixed interest rates for customers who have an investment loan.
"We regularly review our interest rates to balance the long-term benefit for all our customers including those with investment loans, home loans, and deposit accounts. Our investment loan variable rates are some of the most competitive in Australia, and we remain committed to helping our customers own their investments sooner."