The challenger bank has today announced that it will increase both variable and fixed mortgage rates by 10 basis points in response to higher costs and regulatory requirements.
Teachers Mutual Bank is increasing home loan variable and fixed interest rates by 0.10 per cent, effective from today for new business. The rate change will be effective for existing home loan borrowers from 1 July 2017.
In a statement, the bank said the changes are in response to higher cost of funds, and regulatory requirements on the mix of home loans.
Teachers Mutual Bank Limited CEO Steve James said the rate hike is a necessary measure in the current environment characterised by low rates and high funding costs.
“As a mutual bank, our commitment to the long-term stability and growth of the bank for our members drives every decision we make,” Mr James said.
“While we have had to make a small interest rate increase, this is balanced by a range of benefits we offer. Our home loan fees remain lower than those of the major banks; and we offer fee-free redraw, no monthly fees, no fees for additional repayments, and no fees for paying a loan out early on variable rate products,” he said.
“Our offset facility is available across the majority of our home loan products, something that is quite rare in the market.”
The home loan variable and fixed interest rate change will be implemented across Teachers Mutual Bank Limited’s three brands: Teachers Mutual Bank, UniBank, and Firefighters Mutual Bank.