B&E Personal Banking’s lending rates will remain among the most competitive in the market after it announced today that it would be passing on a 12 basis point reduction in response to the recent Reserve Bank decision to reduce the official cash rate.
The reduction will flow onto B&E’s full range of variable home loans, including the low rate, no frills FlexiDiscount product which will reduce to just 3.92% p.a. (comparison 4.04% p.a.).
B&E’s new standard variable rate will be 5.12% which compares favourably to the standard variable rate range for the major banks of 5.22% to 5.29%.
B&E Personal Banking CEO Paul Ranson said that many factors are considered when reviewing lending and deposit rates.
“As a customer-owned financial institution, we are committed to keeping our home loan rates as low as possible and providing value for customers as opposed to profit for shareholders,” said Mr Ranson.
“It is also our aim to balance the interests of borrowers and depositors and as a result, we will increase our 12-17month term deposit rates by 20 basis points.”
The revised rates apply from 16 August 2016 for new loans and 1 September 2016 for existing loans, while the increase in term deposit rates is effective 16 August 2016.