Home Loan Interest Rate Changes

10 March 2020

Variable Home Loan Interest Rate Changes

Community First will be passing on rate cuts to borrowers with variable home loans by at least 0.10%p.a. on 30th March 2020.

Fixed Interest Rate Changes

We are also reducing our fixed rates between 0.10%p.a. and 0.35%p.a. from 18th March 2020.

Understanding the RBA Rate Cut

To be clear, the cash rate set by the RBA is the official rate banks charge each other for overnight borrowings to balance their books. Easy Street is owned and operated by Community First Credit Union. As the credit union is primarily funded by Members’ deposits, any movement’s in the official cash rate does not have the same effect on Community First and Easy Street as it would a major Bank which relies much more heavily on external borrowings to fund its Balance Sheet and needs to make bigger profits to pay external shareholders. The RBA cash rate therefore isn’t an accurate reflection of our cost of funds and is not the sole determinant of our product pricing. Our product pricing aims to take in to account a variety of factors such as our cost of funds, the interests of both loan and deposit holders, market competitiveness and our operating costs, to name a few.

Have a question about your home loan?

We encourage you to talk to us if you require more clarification, your circumstances have changed or you’d like to know what other options are available for your home loan.

The information contained in this article is only correct at the point of time of publication. It is general information and has been prepared without taking into account your personal circumstances, objectives or needs. Please consider if this information is right for you before making a decision to acquire any product.