MEDIA RELEASE

Wednesday, October 15, 2008

B&E slashes standard and variable housing rates

 

B&E Personal Banking has announced significant reductions in variable and fixed housing loan rates, ensuring that loan clients will reap the rewards of last week’s reduction in official interest rates by the Reserve Bank.

The standard variable rate for owner occupied and residential investment housing loans has been reduced by 0.80%. The revised standard variable rate is now 8.50% and compares very favourably to the major banks, where the standard variable rate ranges from 8.53% to 8.57%.

B&E Personal Banking CEO Paul Ranson said that the new rate would apply from October 15, 2008, for new loan applications and from November 1, 2008, for existing loans.

“At the same time, we have also made significant reductions in fixed loan rates, with a reduction in fixed rates of 1.40% since early October. For example, the three-year discounted fixed rate is now 7.59%. The revised rates apply to new loan applications,” Mr Ranson said.

“As a member owned financial institution, we continue to be committed to keeping our rates as low as possible and providing value for members as opposed to profit for shareholders.

With this latest cut, B&E’s standard rates remain below the major trading banks,” Mr Ranson said.