Interest rates stay fair and competitive

Teachers Credit Union has announced its new home loan interest rates, with the rates on several popular products matching the RBA rate increase at just 0.25%.

The interest rate on Solutions Plus Home Loan package rose by 25 basis points, as did the rate on the credit union’s My First Home Loan, whose new rates are 6.89% pa and 7.29% pa respectively.

Although the rate on the credit union’s standard variable rate loan (SVR) went up by 30 basis points, the new rate at 7.54% pa remains lower than the SVRs of the big banks.

“We have positioned our standard variable and our discounted home loan rates to be lower than the four major banks,” said Steve James, CEO of Teachers Credit Union.

“Teachers Credit Union’s promise is to be ‘more than a bank’. Where pricing is concerned, it means we will offer fair, competitive interest rates and low fees compared to the big banks, on like for like products.”

The credit union funds 90% of loans from its retail deposits, so its cost of funds is simple and transparent.

“We have a very straightforward funding model, within which we also maintain high liquidity and capital adequacy levels. To attract depositors we continue to offer strongly competitive rates, which influences the interest rates we set for our loans,” said Steve James.

“Profit for reinvestment and operational support comes from interest income and commissions.”

Teachers Credit Union’s Term Deposit rates rose by up to 29 basis points, depending on the sum invested and the term selected. For example, the new rate for a $10,000 deposit for 12 months is 6.10% pa.

“We support the financial wellbeing of our borrowers and depositors in equal measure,” said Steve James.

The interest rate changes will become effective from 26th November 2010 for new loans and 1st December 2010 for existing loans.

Media contact:

Gillian Tatt, Senior PR Officer, Teachers Credit Union ph: 0448 259 942.