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Unity Bank Interest Rate Changes Effective 1 November 2019

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With the Reserve Bank of Australia making a third reduction of the cash rate by 0.25%, Unity Bank has undertaken another comprehensive review of rates on our variable rate loans and savings/deposit products. With this being the third consecutive rate reduction and home loan rates already at historic lows, our priority is to implement equitable rate changes that strike a fair balance between the competing needs of our borrowing and depositing Members.

While this extremely low rate environment is good news for variable home loan borrowers, we are very mindful that the vast of our Members do not have a home loan.

We have looked at various options with a view to passing on as much of a reduction to our home loan products, whilst limiting reductions on our savings accounts to minimise the impact on savers. Many members are still saving to fund a deposit for their first home, while others who are already in retirement or semi-retirement are earning reduced income due to the unprecedented falls in interest rates.  

To accommodate these competing needs, we are announcing that all new and existing Owner Occupied and Investment variable home loans to be reduced by 0.11% p.a. effective from 1 November 2019. Details of your reduced rates will be advised on your next statement.  

Although it has been necessary to lower the rates on some of our deposit products in order to cover the cost of the loan rate reductions, our popular Bonus Saver account remains attractive compared to similar products available from other banks. New savings rates are available from 1 November 2019 on our website.

It is important to note that after these changes are implemented, our interest margins will still be lower than in the past and our surplus for the year will be negatively impacted. If you require any further information about the impact of the above rate changes, please give us a call on 13 24 40.