P&N passes on rate reductions between 16 to 25 basis points

KEY POINTS

• P&N passing on rate reductions between 0.16% p.a. and 0.25% p.a. across lending portfolio.
• Home Loan intro rate set at 2.99% p.a.
• Fixed Home Loans - 2, 3, 4 & 5 year terms reduced and highly competitive.
• Depositors’ needs have been balanced against borrowers – minimising the impact on & Retirement accounts to 0.10% p.a. and no change to children’s accounts.
• Members urged to compare like for like rates in market.

WA’s largest bank, customer-owned P&N Bank has decreased its lending rates, passing on between 0.16% p.a. and 0.25% p.a. to borrowers following the Reserve Bank of Australia’s (RBA) official cash rate change announced on Tuesday.

Effective from 15 October 2019, new and existing owner-occupiers and investors will benefit from lower rates across the Bank’s home lending portfolio.

P&N’s new one-year introductory rate for new and existing members will be 2.99% p.a.

P&N has also made changes to their fixed rate home loans for 2, 3, 4 and 5 year terms which are highly competitive.

P&N has balanced the needs of investors by minimising the impact of rate reductions on savings accounts. The Bank has passed on 0.15% p.a. to some of their savings accounts but have minimised the impact by only applying a 0.10% p.a. reduction to their & Retirement Account.

In announcing the rate changes, P&N General Manager, Member Experience, Anna Pearce, confirmed that as a customer-owned bank, P&N is committed to providing value to all their members above anything else.

“With the record low interest rate environment, P&N’s lower lending rates provide the opportunity for existing and new members to save money. I encourage everyone to compare like for like product features and not just the advertised rates when reviewing their existing lending arrangements to optimise their personal financial situation.

"The P&N lending team can help by undertaking a full lending assessment for existing and new members and can be contacted on 13 25 77.

“And I'd also like to call out that as interest rates approach 0%, it is correctly being reported that banks will find it increasingly difficult to pass the cuts along to members. This is because we need to continue to balance the benefits to both our borrowers and depositors.”

Variable Home Loans with Offset – Owner Occupied P&I

Source: Institutional websites and Mozo