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Rate change FAQ

Published 5 August 2022

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

On 2 August 2022, the RBA announced its decision to raise the cash rate by 0.50%.

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

Variable rates will increase by 0.50% per annum, effective 11 August, 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

What can I do to lessen the impact?

Here are some ways to help lessen 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.
  • 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.
  • 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.
What should I do if I’m concerned about my ability to cope with this change?

If you are concerned about your ability to cope with this change, a range of options exist to help you. Please call our team of experts on 1300 767 539.

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) has raised the cash rate in consecutive months since May 2022.

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 these cash rate increases, we have taken the difficult decision to raise our home loan variable interest rates in response. This has been done to ensure our continued ability to provide customers with the award-winning level of service they expect.

Economists are predicting that there will be further increases to the cash rate to come.

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

Our new variable interest rate will become effective on 11 August 2022. However, minimum repayment amounts for existing customers will not increase until September, allowing time for all customers to be notified of their new repayment details by mail.

Why are Rate Breaker Package rates changing on a different day?

We review the Rate Breaker Package ‘reference rate’ against the Big 4 banks on every second Tuesday of each month, with any changes to be made the following Tuesday. As a result of this, any changes to the Rate Breaker Package reference rate will be announced separately.

When will I find out my new minimum repayment amount?

We will be contacting you early in August via email to advise of our decision. You will be notified of your new minimum repayment amount in a letter, which you should receive around the end of August. Please note, minimum repayment amounts will not increase until September, 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 15 September 2022. For interest-only customers, your next payment due on 1 September will reflect the interest charged partly at the previous interest rate (up to10 August 2022) and partly at the new rate (11 August 2022  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. We also announced the changes on 5 August 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 11 August 2022.

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.

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

Variable rates for business loans have increased by 0.50% per annum.

When does Great Southern Bank’s new business loan variable rate become effective?

Our new variable interest rate for business loans becomes effective on 19th of August. However, minimum repayment amounts for existing customers will not increase until 23rd of September, allowing time for all customers to be notified of their new repayment details by mail.

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.