Interest rate changes for MyState Bank customers

Following the Reserve Bank of Australia’s (RBA) May meeting, MyState Bank has completed a review of its current interest rates.

The RBA has lifted official interest rates for the first time in more than 11 years, from a record low 0.1% to 0.35%.

For MyState Bank home loan customers, interest rates will increase by 25 basis points (0.25%), effective the 19 May 2022 for new loans and existing loans.

MyState Bank’s General Manager Banking Huw Bough said MyState Bank is always focused on keeping interest rates competitive for both deposit and lending customers.

“We are announcing an increase to a number of term deposit rates. We know many of our customers have built up significant savings over the past few years – it could be for a first home or funding their retirement. With low wage growth, our customers have worked hard to save. We want to make sure their savings work hard too,” said Mr Bough.

“After 11 years without an interest rate rise, some customers may not have previously experienced a rate rise, so we understand there may be many questions and concerns. However, as a responsible lender we strictly assess customers’ repayment capacity, and include a serviceability buffer above current interest rates. Many of our customers are also ahead on their repayments, putting them in a better position to withstand an interest rate rise.”

Some helpful tips for MyState customers

• All customers who have a variable rate owner occupied or investment loan will be advised directly by MyState Bank of any changes to their rate and repayments this month.
• If you’re currently making extra repayments that are the same as or more than your new repayment amount you don’t need to do anything. By making extra repayments you’re reducing the amount of interest you pay over the life of your loan.
• If you pay your loan by electronic transfer you’ll need to update your repayment amount via Online Banking.
• If you have a direct debit set up from a nominated bank account you should check your direct debit details to make sure they’re still meeting your new minimum repayment amount. If you’ve chosen to let us update the direct debit amount so that it always equals the minimum repayment amount, you don’t have to do anything more. But if you’ve chosen to set your own repayment amount, you’ll need to make sure this still covers your new minimum repayment.
• If you’ve asked your employer to credit your loan account directly you might need to update the repayment amount to reflect your new minimum repayment, so get in touch with your employer directly and let them know your new repayment details.
• If you’re experiencing difficulty, please call us as soon as possible. Our specialist Customer Care Teams can work with you.
• If you have any questions, you can send us a message via Internet Banking or contact our friendly Customer Care Team on 138 001.