Interest Rate Change Announcement Talk to us Phone us Email us Breadcrumbs Teachers Mutual Bank About us Member news Member news 2017 Interest Rate Change Announcement 30 June 2017 30 June 2017 Interest Rate Change Announcement Due to continued regulatory and market pressures, the bank has had to review its home loan interest rates, and has made the difficult decision to increase all home loan interest rates by 0.10%p.a. For home loans new to the bank, this came into effect on 13 June 2017, whilst for existing home loans it will come into effect 1 July 2017. For members with an existing home loan with the bank, the change in home loan repayment will not come into effect until on or after 20 July 2017 depending on members’ repayment schedules. We appreciate that this increase has followed recent changes in the first half of the year. The bank always carefully considers these decisions, and is very conscious of the impact these changes have on its members. Why is the Bank increasing Home Loan interest rates when the Reserve Bank of Australia (RBA) has not made any announcements to change the cash rate? As a mutual bank we operate in a highly competitive home loan market and when our cost of funds goes up – which could be for a number of reasons (including wholesale investment cost increases or other market conditions) – then home loan interest rates are usually impacted. Although in the past, interest rates have moved when the RBA cash rate moved, over time this has changed. Each financial institution has different sources of funding and pricing pressures, so increases and decreases in the RBA cash rate don’t always mean a corresponding increase or decrease in the rate we charge. We regularly review our interest rates to ensure they reflect current market conditions. From time to time we must adjust our pricing to continue to operate sustainably and competitively while servicing our member’s savings and loans requirements. We’re committed to the long term stability and security of the bank for our members, and this ultimately drives every decision we make. Will my repayments increase? We have mailed letters to existing home loan borrowers impacted by the interest rate change which should be received from 27 June 2017. These letters advise you of your new interest rate and if there is a change to your minimum repayment. How do I get more information? You can visit any one of our branches, send us an email to firstname.lastname@example.org or call us on 13 12 21. Back to top.