MyState Bank announces changes to interest rates

MyState Bank has completed a review of its current interest rates following the Reserve Bank of Australia’s (RBA) August meeting, where it lifted the official cash interest rate from 1.35% to 1.85%.

For MyState Bank home loan customers, variable home loan interest rates will increase by 50 basis points (0.50%), effective Monday 15 August 2022 for new and existing customers.

MyState Bank Managing Director and CEO Brett Morgan said this is a challenging time for many Australians, as the Reserve Bank seeks to cut spending to rein in rising inflation.

“While some customers are ahead on their mortgages, for others this will be the first time they’ve been faced with several months of increasing repayments,” said Mr Morgan.

He said as it’s unlikely to be the last increase from the RBA, conversations with customers are around preparing for further rate changes. However, as a responsible lender, Mr Morgan added MyState Bank strictly assess customers’ repayment capacity, and include a serviceability buffer above current interest rates.

“Over the past month, our customer contact centre conversations are not just about interest rates, but also about cost of living pressures. For any customers concerned about their ability to meet upcoming loan repayments, we strongly encourage they get in contact with us as early as possible, as there are ways we can help out.”

Mr Morgan said while this latest increase in the cash rate was widely anticipated, home loan customers will understandably be concerned about the impact on household budgets. MyState Bank will always advise customers when interest rates change and let them know directly what their new minimum monthly repayments will be.

“Many of our MyState Bank customers are looking for advice on preparing for the months ahead. It could be a case making small changes now, such as forgoing a night out and cooking at home, cancelling some lockdown entertainment luxuries and even looking for better deals on purchases.”

“We’ve got some handy tools and money saving articles on our MyState Bank website. For example our home loan repayment calculator, can help with monthly budgeting,” said Mr Morgan.

Helpful tips for MyState home loan 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.
• 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 the amount to make sure it’s still meeting your new minimum repayment amount. If you’ve chosen to let us update the direct debit so it always equals the minimum repayment amount, you don’t have to do anything more.
• If you’ve asked your employer to credit your loan account directly, check the details and get in touch with your employer directly if you need to update the repayment amount.
• If you’re experiencing financial 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.