Following a full assessment of new regulatory requirements by the Australian Prudential Regulation Authority to limit Interest Only lending, People’s Choice Credit Union will now set rates for Interest Only Loans independently to Principal and Interest Loan rates.
Further to consideration of these regulatory settings, and taking into account market interest rate movements, funding costs and demand, the credit union has reviewed its entire suite of Variable loan interest rates.
Effective Tuesday, 23 May 2017, People’s Choice Variable rates will change as follows:
- Owner Occupied Principal and Interest rates will increase by 4 basis points to 5.25%p.a.
- Owner Occupied Interest Only rates will increase 24 basis points to 5.45%p.a.
- Investment Principal and Interest rates will increase 25 basis points to 5.85%p.a.
- Investment Interest Only rates will increase 36 basis points to 5.96%p.a.
In addition, Variable Line of Credit rates will increase by 28 basis points to 5.80%p.a. from Wednesday, 12 April 2017.
Chief Executive Officer, Steve Laidlaw, said that People’s Choice is committed to fair pricing for the benefit of all members, and for the credit union’s long-term sustainability.
“These rate changes will ensure we continue to offer competitive home loan rates that are a genuine alternative to the big banks, while ensuring our compliance with industry regulations and the provision of competitive returns for depositors. It is a careful balance,” Mr Laidlaw said.
“We acknowledge the impact that these changes may have on our members and their repayments, and recognise that this may provide an opportunity for members to review their current situation, ensuring they have the best possible loan to suit their current needs,” he said.
“Recently voted Credit Union of the Year in Roy Morgan’s 2016 Customer Satisfaction Awards, the service and support People’s Choice offers our 353,000 members is second-to-none and we will – as always – work with all affected members to help them achieve their financial goals.”