Following the decision made by the Reserve Bank last week to lower the official cash rate by 0.25% BankVic will reduce its standard variable owner-occupied rate (SVR) by 0.12% to 4.17% and standard variable investor rate by 0.10% to 4.89%.
This means for a member with an owner-occupied standard variable home loan of $400,000, this reduction could result in a repayment reduction of $29 per month, or $348 each year.
In making this decision, BankVic has carefully considered market conditions as well as the interests of both our borrowers and deposit holders. This latest RBA rate change is now the third interest rate cut since June 2019, and combined with the pressures of the lower interest rate environment and our funding costs, we are presented with a challenging economic environment. One where it is becoming increasingly challenging for us to absorb the impact of passing on the full rate cut whilst making sure we are well positioned to continue to invest in providing sustainable, competitive banking solutions for our members into the future.
With these changes BankVic’s owner-occupied standard variable rate remains at least 0.60% less than those of the major banks.
As a member owned bank, BankVic’s profits are 100% re-invested to benefit our members and their communities and we remain committed to making sure we continue to offer products and services for our members that are a competitive alternative to the big 4 banks.
For existing lending, the new variable rates will be effective from 28 October. Members who would like more information on the rate change are encouraged to contact us on 13 63 73 or visit their nearest BankVic branch.