WA’s largest locally owned banking institution Police & Nurses Credit Society has announced that it will follow the Reserve Bank, cutting the full interest rate on its variable home loan products by 0.25 per cent.
As PNCS pulls ahead in the banking sector, the big four banks remain tight-lipped as to how they will respond to the RBA's rate cut from yesterday. The official rate now stands at 4.25 per cent.
The Bank of Queensland also decided to pass on the rate cut.
Compared to similar products offered by the major banks, PNCS is cast in a favourable light. CEO Fred Huis says that it pays to bank with a member-owned banking institution, which has the interests of its members, not shareholders, as top priority.
“Because we exist to serve our members, member-owned banking organizations can generally offer a better rate than the big banks,” he said.
The rate cuts will benefit PNCS members, who equal $2.2 billion in Western Australian home loans.
The PNCS Easypay home loan will offer an interest rate of 6.78 per cent p.a., which is lower than the standard variable rate of each of the big four banks.
Lower still, the Dream Home Loan will offer a rate of 6.49 per cent p.a., and the lowest rate offered on the EasyPay Plus Package is just 6.29 per cent p.a.
The lowest of ANZ’s variable home loans on offer is 6.85 per cent p.a. for its Simplicity Plus option, while Westpac offers 6.91 per cent p.a. for its Flexi First Option Home Loan. NAB’s Base Variable Rate Home Loan has a rate of 6.97 per cent p.a.
Bankwest, which has more options available, has similar rates.
“I’d recommend that if people are unhappy with the major banks then they should shop around and compare the loans offered by other lenders, including those offered by Western Australia’s largest locally owned banking institution; Police & Nurses,” said Mr Huis.