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.”