Wednesday 5 April, 2017
Newcastle Permanent has announced changes to interest rates applicable to variable rate home loan products for residential borrowers effective from Monday, 10 April.
- Variable interest rates for home loans with Principal and Interest repayments will increase by 0.1% p.a.
- Variable interest rates for Credit Facilities and loans with Interest Based (also referred to as Interest Only) repayments will increase by 0.2% p.a.
An increase of 0.1% p.a. changes a customer’s repayments by approximately $6 per month for each $100,000 of their loan balance, based on a 30 year loan term.
In early May, customers will receive a letter outlining their new interest rate and monthly repayment amount. To allow customers time to budget, their new repayment amount will not become effective until June 2017.
Newcastle Permanent CEO Terry Millett said:
“We offer lower interest rates for customers who are making principal and interest repayments to encourage customers to pay down their home loan in this low interest rate environment. Until the end of the financial year we’re waiving the fee to switch from interest only repayments to principal and interest repayments, to help our customers help pay down their loan earlier.”
“We regularly review our interest rates to balance the long-term benefit for all our customers including those with home loans and deposit accounts. Our variable rate home loans are some of the most competitive in the country, and we remain committed to helping our customers own their homes sooner.”
“Although our home loan interest rates are at near historic lows, the cost of funding our home loans has increased this year. So after extensive consideration we have decided to increase our variable home loan interest rates effective on Monday, 10 April 2017.”