Text Size text size decrease text size increase

Hunter United Credit Union Reduces Interest Rates – 4 May 2012

Written by Annabelle McNamara

Attention: open in a new window. Print

Hunter United has announced it will reduce its Standard Variable home loan to 6.75% (down 29 basis points).

Our Basic Home loan now starts from 6.25% on a $250,000 loan.

Hunter United’s Managing Director, John Ford, said Hunter United has not made any "out of cycle" adjustments to loan pricing and remains priced below the major banks.

"Our ability to pass on a larger reduction in loan rates is limited by the fact that deposit rates remained stubbornly high. That is our funding costs, especially for Fixed Term Deposits, are not showing any significant downward trends”, he said.

These reduced loan rates will be passed onto borrowers from the 30 June, 2012.

Comments

avatar Louise Groves
0
 
 
why the time delay in passing on the rate reduction - i would have expected a much more responsive reaction from a Credit Union, as opposed to the constantly demonstrated time lags of the big banks - no doubt interest rates on deposits will have already dropped, so what is your excuse in holding off for mortgage holders?
Tuesday 08 May 2012, 10:56
Post Reply
Name *
Code   
Submit Comment
Cancel
avatar gferris
0
 
 
Thanks for your comments Louise,
Deposit rates are staying stubbornly high despite the cut in the RBA cash rate. While some deposit rates have reduced by 25 basis points many term deposits may not reprice for up to two years from now. This is good news for investors but unfortunately limits our ability to pass on loan rate reductions (we need to balance the books, sometime conflicting needs of investing and borrowing members).

Hunter United did not make any “out of cycle” loan rate increases and remains priced below the major banks. We look forward to passing on the loan rate reductions in June to further improve our competitive position.
Regards,
Greg Ferris
Executive Manager, Sales, Service & Marketing.
Friday 25 May 2012, 15:21
Post Reply
Name *
Code   
Submit Comment
Cancel
Name *
Code   
Submit Comment