CUA and ME Bank leave variable rates unchanged: a guide to new mortgage rates as the dust settles

Credit Union Australia (CUA) has today confirmed it will not be increasing any of its variable-rate mortgages. 

ME Bank has also left its variable interest rates unchanged following the RBA announcement. The bank’s standard variable rate remains at 6.74%. ME Bank is wholly owned by industry super funds.

CUA, one of Australia biggest customer-owned lenders, will leave its standard variable rate unchanged at 6.72%, more than 50 basis points lower than the lowest rate of the big four, NAB, which has increased its standard variable rate to 7.31%. 

CUA and ME Bank have taken what Yellow Brick Road chairman Mark Bouris has referred to as the “opening” created for smaller lenders by the major banks slugging customers with interest rate increases outside of the official rate cycle.

Chris Whitehead, chief executive of the CUA, says the company remains committed to offering customers the best deal possible and points out that since April 2010, CUA’s standard variable rate has consistently been at least 0.5% cheaper than the average of the big fours’ equivalent products. 

“While CUA is certainly not immune to the funding pressures facing the big banks, our ability to focus entirely on our customers, rather than on dividends to shareholders, allows us more flexibility to make rate decisions that are in their best interests,” he says.

Another mutual lender, the Jerry Seinfeld-fronted Greater Building Society, did not follow the CUA, raising its variable rates by 0.1% and pushing up its standard variable mortgage to 6.9%. 

Despite this increase, the Greater is still offering a standard variable rate 0.56% lower than Westpac, which has the highest variable rate of the big four at 7.46%. 

“On current rates, a customer with a 30-year, $300,000 standard variable home loan is still $1,464 a year better off than a Westpac standard variable home loan customer. The Greater customer will save $43,920 over the life of the loan,” says Greater chief executive Don Magin. 

The Greater variable rate increase is effective from tomorrow for new loans and for existing customers from February 22. 

6.72%

The standard variable bank rate that CUA is currently charging its customers.

6.90%

The standard variable bank rate that the Greater Building Society will charge new customers from February 15 after raising rates by 0.1%. The rate rise for existing customers kicks in on February 22

6.94%

The standard variable bank rate that Heritage Bank is currently charging its customers.

7.20%

The standard variable bank rate that BankWest is currently charging its customers.

7.22%

The standard variable bank rate that ING Direct is currently charging its customers

7.24%

The standard variable bank rate that HSBC is currently charging its customers.

7.30%

The standard variable bank rate that Bank of Melbourne/St.George is currently charging its customers.

7.31%

The standard variable rate that NAB will charge its customers from February 20 after lifting rates by 0.09%.

7.33%

The standard variable bank rate that Suncorp is currently charging its customers.

7.36%

The new standard variable bank rate ANZ will charge its customers from February 17 after lifting rates by 0.06%.

7.36%

The standard variable bank rate Bank of Queensland will charge its customers until at least the next RBA meeting on March 6, the bank has pledged.

7.41%

The new standard variable bank rate the Commonwealth Bank will charge its customers from February 20 after lifting rates by 0.1%.

7.45%

The new standard variable bank rate Bendigo and Adelaide Bank will charge its customers from February 21 after lifting rates by 0.15%.

7.46%

The new standard variable bank rate Westpac will charge its customers from February 20 after lifting rates by 0.1%. 

*All rates as announced on February 14.

{module What do you intend to do given the current interest rate fluctuations?}

{module Have you changed lenders in the last six years?}