In announcing its recent range of rate cuts, a non-major lender emphasised that “unlike the major banks” it has lowered both fixed and variable rates following the RBA’s November cash rate cut.
The reductions from Western Australia-based P&N Bank go up to 0.10% p.a. for variable and 0.96%p.a. for fixed rate products.
From 20 November 2020, new and existing owner-occupiers and investors can access the lower rates across the bank’s & Home Loan, & Basic, Simple and & Investor variable home lending portfolio.
Effective from 11 November, the group’s three-year fixed home loan rate for new and existing owner-occupiers will drop to 1.99% p.a.
According to P&N Bank general manager Anna Pearce, being a customer-owned bank made the decision to pass on as much of the RBA's cash rate cut to help customers an obvious one.
“We acknowledge it has been a hard year for many, so unlike the major banks, we’ve passed this benefit on to put money back in our customers’ pockets,” Pearce said.
“As a customer-owned bank, we are not here to make profits for third party shareholders and any profits assist us to maintain our reserves and are required to ensure we have a sustainable business on behalf of our members.”
Pearce also emphasised that P&N’s lower lending rates provide for both existing and new customers, helping all who come through the door 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,” she said.
