Friday, 4 October 2019
In announcing its reduction to home loan interest rates, Newcastle Permanent has considered the impact the historically low rates will have on all of its 325,000 customers.
Newcastle Permanent will cut its standard variable interest rates by 0.13% effective from 22 October 2019.
This equates to a reduction in the minimum monthly repayment of $29 per month or an annual saving of $348 for customers with a $400,000 Principal & Interest (P&I) loan over a 25 year term.
This latest announcement brings the total interest rate cuts announced by Newcastle Permanent since June 2019 to 0.63% p.a., which is a saving of $145 per month or $1,740 per year on a $400,000 variable rate P&I loan over a 25 year term.
Newcastle Permanent has also announced a number of interest rate reductions for new fixed rate loans of up to 3.50% p.a. allowing our customers an opportunity to take advantage of the historically low interest rates for terms up to 10 years.
| Fixed rate term |
Rate Change* |
New Rate for Owner-Occupied
Premium Plus Package Fixed rates
|
New Rate for Investment Premium
Plus Package Fixed rates
|
| 1 year |
-0.25% |
2.99% p.a. |
3.29% p.a. |
| 4 year |
-0.25% |
3.33% p.a. |
3.44% p.a. |
| 5 year |
-0.25% |
3.33% p.a. |
3.44% p.a. |
| 7 year |
-3.50% |
3.99% p.a. |
4.09% p.a. |
| 10 year |
-3.50% |
3.99% p.a. |
4.09% p.a. |
*New fixed rate home loan interest rates effective 8 October 2019.
“Newcastle Permanent variable home loan customers have received a 0.63% p.a. reduction in interest rates since June this year, significantly more than that announced by any of the major banks, ensuring our customers continue to enjoy some of the most competitive home loans in Australia,” CEO Bernadette Inglis said.
“In making the decision to cut interest rates we also have to consider our 294,000 deposit account customers, many of who depend on interest income. As a customer-owned organisation we need to ensure there is an appropriate balance between the needs of all customers when setting interest rates.”
“We retain all our profit within the business to maintain our financial strength and deliver value to customers in the form of exceptional service, award-winning products and of course, competitive interest rates.”
Customers who have questions regarding the rate change are encouraged to speak to one of our home lending specialists in branch or over the phone.