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Rate change FAQ

Why are interest rates going up?

Recent global events have led to a surge in the cost of goods and services. In an attempt to bring inflation under control, the Reserve Bank of Australia (RBA) raised the cash rate in May 2022 for the first time in 11 years.

The cash rate has an indirect impact on our costs. Put simply, when the cash rate goes up, it becomes more expensive for financial institutions like Great Southern Bank to lend money.

As a result of May’s cash rate increase, we took the difficult decision to raise our home loan variable interest rates  in response. This was done to ensure our continued ability to provide customers with the award-winning level of service they expect.

The RBA raised the cash rate again in June, with economists predicting further increases to come.

What is the Reserve Bank of Australia’s latest announcement regarding the cash rate?

On 7 June 2022, the RBA announced its decision to raise the cash rate by 0.50% to 0.85%

How much is Great Southern Bank’s new home loan variable interest rate?

Variable rates have increased by 0.50% per annum for most of our owner-occupied and investor home loans. Interest rates on our Rate Breaker Loan are being reviewed separately in line with the terms and conditions relevant to that product.

When did Great Southern Bank’s new home loan variable rate become effective?

Our new variable interest rate became effective on Wednesday 22 June 2022. However, minimum repayment amounts will not increase until July, allowing time for all customers to be notified of their new repayment details by mail.

When will I find out my new minimum repayment amount?

We have already contacted you via email to advise of the rate change. You will be notified of your new minimum repayment amount in a letter, which you should receive around the end of June. Please note, minimum repayment amounts will not increase until July, allowing time for all customers to be notified by mail first.

When will my first repayment at the new rate be?

If you are paying principal and interest, your new minimum repayment amount will apply from your next repayment due date on or after 27 July 2022. For interest-only customers, your next payment due on 1 July will reflect the interest charged partly at the previous interest rate (1-21 June) and partly at the new rate (22 June onwards).

Are all home loans changing by the same amount?

The change detailed above applies to most variable owner-occupied and investor home loans. Rate Breaker Package Home Loans are being reviewed in line with that product’s specific terms and conditions.

Will I be notified directly?

Variable home loan customers have been notified of the interest rate change by email and in their online banking. We also announced the changes on 10 June 2022 on our website and social media. Customers will be notified by mail of their new minimum repayment amount shortly after the rate change becomes effective on 22 June 2022.

What can I do to lessen the impact?

Here are some options to help less the impact of rising interest rates. Please contact us if you require any more information.

  • Change your repayment frequency to weekly or fortnightly
    This can reduce the amount of interest you need to pay over the life of your loan and may help with budgeting, particularly if you are paid by your employer weekly or fortnightly.
  • Make fee-free extra repayments with free redraw
    Your loan may be eligible to make unlimited fee-free extra repayments to pay down your loan sooner. These can be redrawn free of charge if you need a cash injection.
  • Utilise your offset accounts (if available on your loan)
    Eligible customers can link up to six offset accounts to reduce the amount of interest due each month, meaning they are paying down the loan balance (the principal) faster.
What should I do if I’m concerned about my ability to cope with this change?

If you are concerned about this change, please call our team of experts on 1300 767 539.

Why is my variable rate higher than the one advertised for new customers?

The variable rate applicable to your home loan depends on the type of loan, when you took it out, and any discounts or special offers available at the time. You can check your home loan contract to see what components make up your interest rate.

When and where will the new savings rates be announced?

We are currently reviewing our deposit and savings rates. You can view the latest rates at any time on the relevant section of our website.