Monday, 9 November, 2020

IMB Bank announced today that it will cut fixed home loan interest rates by between 10bps and 42bps for owner occupier borrowers.

The decision comes after assessment of a range of factors including the impact lower rates continue to have on IMB Bank’s deposit customers.

IMB Bank CEO Rob Ryan said, “As a mutual bank, we strive to act in the best interests of all our customers as equitably as we can – we have done so for nearly 140 years. RBA rate movements do not only shape decisions on loan rates – they often impact deposit rates because banks need to consider both sides of the balance sheet.”

The decision to reduce fixed home loan rates recognises IMB Bank’s variable home loan rates remain some of the most competitive on offer helping to contain living costs for its customers. Additionally, it insulates depositors, such as retirees and those saving for their first home, from the full impact of the interest rate reduction.

Mr Ryan said, “Our decision has enabled us to increase our 6-month Term Deposit rate by 10bps, which we believe will be welcomed by IMB customers relying on income from fixed interest deposits.”

“While our variable home loans rates remain among the best on offer, we know some customers may be seeking more certainty in uncertain times. Our focus on fixed rate reductions may help them in this regard, in particular our 3-year Fixed Rate home loan which has reduced by 0.42% to 1.97% p.a., making it one of the leading fixed rates in market.”

IMB Bank also advised that lending rates for small business customers are under consideration, acknowledging the critical role the sector will play in rebuilding our economy and reassuring business members that they will continue to be supported through and beyond the COVID-19 pandemic.

The interest rate changes take effect on November 16.