BSB 806 015

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BSB 806 015

P&N Bank passes on rate reductions of 18 to 39 basis points

07 Jun2019

Key points

  • P&N passing on rate reductions of 18 to 39 basis points across entire lending portfolio, including personal loans and credit cards.
  • 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.
  • Customers should ensure they’re comparing like for like lending products to optimise their financial situation.

WA’s largest bank, customer-owned P&N Bank has decreased its lending rates by up to 39bps following the Reserve Bank of Australia’s (RBA) official cash rate change announced on Tuesday. 

Effective from late June, new and existing owner-occupiers and investors will benefit from lower rates across the entire Bank’s lending portfolio, including personal loans and credit cards. 

P&N’s 1 year Intro & Home Loan for new and existing customers will drop by 25bps to a competitive 3.30%pa and our flagship & Home Loan will drop by 18bps to 3.81%pa for new and existing owner occupier customers with up to 90% LVR. This rate is significantly lower that the major banks rates for an equivalent owner occupier variable home loan product with offset., all of which are over 5.00%pa (see table).

In a move that demonstrates the Bank’s commitment to delivering value to its customers, P&N will offer a reduced rate on 2 and 3 year fixed term loans at 3.30%pa and 3.33%pa respectively for less than 80% LVR; some of the best rates in market.

For & Home Loan customers, P&N’s & Visa Platinum credit card purchase rate will also decrease to match the 3.81%pa & Home Loan rate at a time when other Visa credit cards attract rates of more than 11.49%pa.

Furthermore, as one of the few Australian lenders to offer reverse mortgages, we have prioritised passing on the full 25bps 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. 

“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.”

Members will receive personalised information about how these changes impact their accounts and future repayments early next month.  

Variable Home Loans with Offset – Owner Occupied P&I


Effective Date

Rate Cut

Proposed Rate

ANZ (Standard Variable Rate Loan)

14 June



Bankwest (Mortgage Shredder)

25 June



CBA (Standard Variable Rate Loan)

25 June



NAB (Tailored Home Loan)

14 June



Westpac (Rocket Repay Home Loan)

18 June



Source: Institutional websites & Mozo


P&N & Home Loan

28 June




Variable home loan rates, effective 28 June 2019


Old Rate (pa)

New Rate (pa)

Rate Change

& Home Loan Intro Rate




& Home Loan




 Fixed home loan rates, effective 14 June 2019


≤80% LVR old rate

≤80% LVR new rate

>80%LVR old rate

>80%LVR new rate


Fixed 2 Year (Owner Occupied)






Fixed 3 Year (Owner Occupied)






Fixed 2 Year (Investor)






Fixed 3 Year (Investor)






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