MyState Bank has completed a review of its current interest rates following the Reserve Bank of Australia’s (RBA) June meeting, where it lifted the official cash rate by 25 basis points, taking it from 3.85 per cent to 4.1 per cent.
In response to the RBA’s decision to increase the official cash rate, the MyState Bank variable home loan interest rate will increase by 25 basis points. The change will be effective from 19 June 2023.
New and existing savers will receive one of the most competitive rates in Australia of 5.0 per cent1 through the MyState Bonus Saver account. The increase will be effective from 1 July 2023.
MyState Term Deposit will also receive a boost with a 0.25 per cent increase to the 12 month terms to 4.75 per cent, and a 1.10 per cent increase to the nine month term to 4.70 per cent effective 16 June 2023.
MyState Bank Managing Director and CEO Brett Morgan said borrowers were proving resilient in the face of the RBA’s 12 rate rises, but it wasn’t getting any easier for many.
“Despite the RBA rate rises, borrowers have done a great job managing their money,” Mr Morgan said. “The number of mortgage holders behind on their repayments remains low and many remain well ahead on repayments.
“But there is no doubt it is getting harder for many, and there is further pain ahead. A large factor is the lag of around two to three months between a rate rise announcement and when it hits hip pockets.
“For those who are concerned about meeting their repayments, I encourage you to get in touch with your bank, because we are here to listen and to help.
“MyState Bank is also continuing to call each and every one of our customers who have a fixed rate mortgage coming to an end, in the weeks before their fixed rate expires.
“It was an exceptional time when Covid and historically low rates had so many of us locking in fixed rate loans. Now, we are ensuring we provide an equally exceptional response to our customers as they face the difficult decision on the other side.
“Coupled with the rising cost of living, it can be a really worrying and uncertain financial time for borrowers, especially if they’re not prepared. That’s why we’re going the extra mile, to ensure that our customers are able to chat with a local who truly understands their needs.”
1Once eligibility requirements have been met.