realestatebusiness logo

Subscribe to our newsletter

Qld-based lender cuts fixed rates

The member-owned bank has reduced rates on fixed rate and variable home loans in response to the RBA’s official cash rate cut announced on Melbourne Cup Day.

Bananacoast Community Credit Union (bcu) has cut fixed interest rates by up to 1.01 per cent per annum on fixed rate home lending products for owner-occupiers and 0.94 per cent for investors.

Bcu’s new two-year fixed rate home loan interest rate for owner-occupiers on principal and interest will be 1.98 per cent (3.76 per cent per annum comparison rate).

The bank is offering a two-year fixed rate owner-occupied interest-only home loan of 2.48 per cent per annum (3.84 per cent per annum comparison rate), investment loan principal and interest rate of 2.18 per cent per annum (3.92 per cent per annum comparison rate), and investment loan interest-only rate of 2.28 per cent per annum (3.94 per cent per annum comparison rate).

The bank has also reduced the rate of its OMG variable home loan interest rate for new and existing owner-occupiers by 0.10 per cent to 2.59 per cent (2.59 per cent per annum comparison rate).


While the rate changes generally apply to new and existing customers, the fixed rate changes would not apply to existing fixed rate loans, but members with current variable home loans can switch to these new rates.

The changes are effective from 3 December.

The rates cuts have followed the Reserve Bank of Australia’s (RBA) decision to cut the official cash rate from 0.25 per cent to a new record low of 0.10 per cent, as well as its move to broad quantitative easing.

Commenting on the bank’s decision to cut its rates, bcu general manager Mike Ribbens said the bank would like to pass on as much of the RBA’s rate cut as possible.

“We do not pay dividends to third-party shareholders but return as much profit as we can through competitive products delivered with member-focused personalised service,” he said.

“In this record-low interest rate environment, it may now be possible for more locals within our communities to enter the home ownership market, and that is something bcu are proud to be a part of.”

Mr Ribbens encouraged customers to research and compare rates in the market before making any decisions on their home loans.

“I encourage everyone to compare like-for-like product features and fees and not just the advertised rates when considering potential lending arrangements, as an advertised rate is often just one of the important things to consider,” he said.

The latest rate cuts by bcu have followed similar moves by several other banks, including Teachers Mutual Bank Ltd (TMBL), all of the major banks, ME Bank, Suncorp, Citi, CUA, P&N Bank, ING Bank, Bendigo Bank, MyState Bank and AMP Bank.

Bcu merged with WA-based P&N Bank in November 2019, which saw both banks retain their existing brands, with the P&N (Police & Nurses) brand in WA and the bcu brand operating in NSW and south-eastern Queensland.

Bcu runs as a division of P&N.

[Related: Westpac Group cuts fixed rates]

Qld-based lender cuts fixed rates
Qld-based lender cuts fixed rates

Malavika Santhebennur

Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.

Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.

Latest News

  Following Saturday’s (21 May) federal election, here’s a recap of the housing policies we can expect to see this year. ...

The bank’s latest data suggests that mortgage fees have decreased during the last quarter, while surging over the past 12 months. ...

The non-bank group has closed its latest RMBS, stating that a portion will be focused towards its inaugural social bond. ...


Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

What is the maximum proportion of income borrowers should use to service a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.