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Interest Rate Update

07 June 2019

Interest Rate Update

The Bank has reviewed its interest rates in line with the market and decided to reduce its variable rate home loans by 0.25% p.a. for loans with a current loan to value ratio (LVR) less than or equal to 80%, effective from 4th July 2019. This rate reduction excludes Investment and Construction Home Loans.

When we change interest rates, the decision is not easy for the Bank as we need to balance the needs of our depositors, who will also be impacted by this low interest rate environment.

Frequently asked questions

What is Loan to Value Ratio (LVR)?

The LVR is the amount you are borrowing, represented as a percentage of the value of the property being used as security for the loan.

How do I know my current LVR?

Your current LVR is your loan balance calculated as a percentage against the original value of the property used as security for the loan at time of application.

Why is this rate cut not applied to all variable home loans?

When we change interest rates, the decision is not easy for the Bank as we need to balance the needs of our depositors, who will also be impacted by this low interest rate environment.

How and when will this impact deposit rate products?

Australian Military Bank will be reviewing current deposit market conditions following the recent RBA decision and will inform our members shortly of any changes to our rates.

When will these interest rate changes come into effect?

All changes to variable rate home loans with a current loan to value ratio (LVR) less than or equal to 80% effective from 4 July 2019. This rate reduction excludes investment and construction loans.

Will my repayments change?

For members with a variable rate home loan with a current loan to value ratio (LVR) less than or equal to 80% (excluding investment and construction loans), principal and interest rates will decrease by 0.25% p.a. We’ll adjust any minimum repayments from 4 July 2019. This adjustment will be reflected in Online Banking for repayments from 4 July 2019.

For members with a variable rate home loan with a current loan to value ratio (LVR) less than or equal to 80% (excluding investment and construction loans), interest-only rates will decrease by 0.25% p.a. We’ll adjust any minimum repayments from 4 July 2019. This adjustment will be reflected in Online Banking for repayments from 4 July 2019.

Is the rate reduction applicable to new or existing Home Loan interest rates?

The outlined interest rate reduction applies to existing eligible Home Loans only.

What will my interest rate be if I apply for a new Home Loan?

The applicable interest rates for all new Home Loan products can be found here.

What happens if my LVR falls below 80% after 4 July 2019?

The 0.25% p.a. discount is only applicable to eligible Home Loans with a LVR equal to or below 80% as at end of day 3 July 2019. Any LVR changes thereafter will not alter your existing Home Loan interest rate retrospectively.

I would like further information?

If you have any further questions please contact our Member Contract Centre on 1300 13 23 28, 8am-6pm AEST (Monday-Friday) and 8am-12pm AEST (Saturday). 

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