P&N Bank passes on rate reductions of up to 18 basis points

KEY POINTS

• P&N passing on rate reductions of up to 18 basis points across lending portfolio.
• Highly competitive low rates are on offer for variable, fixed, owner occupier and investors - new and existing borrowers.
• Customers urged to compare like for like rates in market rather than the percentage drop relative to RBA drop.
• The range of reductions have been made to be as equitable as possible for all customers, balancing the needs of both borrowers and depositors.
• P&N have held rates steady in recent months in contrast to other lenders who have increased lending rates out of cycle.

WA’s largest bank, customer-owned P&N Bank has decreased its lending rates by up to 18bps following the Reserve Bank of Australia’s (RBA) official cash rate change announced on Tuesday.

As well as these changes, P&N have recently made changes to their fixed rate home loans which are some of the most competitive rates in the market for both owner occupiers and investors and provide a significant opportunity for customers to make the most of the record low interest rate environment.

Effective from 23 July, new and existing owner-occupiers and investors will benefit from lower rates across the Bank’s home lending portfolio.

Unlike some of the major banks who last year increased their home loan rates, P&N has held their rates flat and continues to offer some of the best rates in market. P&N’s new one-year introductory rate for new and existing customers will be 3.15% p.a.

For & Home Loan customers, P&N’s & Visa Platinum credit card purchase rate will also decrease to match the 3.63% p.a & Home Loan rate at a time when other Visa credit cards attract rates of more than 11.49% p.a.

Furthermore, as one of the few Australian lenders to offer reverse mortgages, P&N has prioritised passing on a 18bps reduction to its reverse mortgage loan customers to provide the opportunity for older customers to utilise the equity in their home to achieve their immediate financial goals – improving their lifestyles in retirement.

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 customers above anything else. 

“Unlike the listed banks, customer-owned P&N is not focussed on making profits for third party shareholders so we’re able to offer the most competitive lending and deposit rates we can while retaining a small margin to operate and develop the Bank for our customers in a sustainable way.

“At a time when other lenders have increased their rates out of cycle, P&N has held our lending rates steady while offering additional features that benefit our customers’ hip pockets.  In passing on the 18bps reduction to our & Home Loan, P&N customers have access to one of the most competitive offers in market when comparing like for like loans.

“With the record low interest rate environment, P&N’s lower lending rates provide the opportunity for existing and new customers 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 customers and can be contacted on 13 25 77.”

Variable Home Loans with Offset – Owner Occupied P&I

The variable rate changes will take effect on 23 July 2019.