In the last two months, the Reserve Bank of Australia (RBA) has announced a combined 1.00% increase to official cash rates (0.50% increase announced on 5 July and another 0.50% on 2 August).
In response to this 1.00% total increase, Australian Mutual Bank has made the decision to pass on a lesser combined 0.90% increase to variable interest rate mortgage secured loan borrowers from 1 September 2022. All existing Variable Mortgage Loans, including Mortgage Secured Line of Credits and Mortgage Secured Commercial Loans, will also increase by 0.90%.
The decision to delay passing on the 0.50% from the July RBA decision to be effective 1 September and passing only 0.40% from the August movement was made in order to support our members in minimising the impacts of rising living costs.
Australian Mutual Bank has also reduced and deferred the 3 May 2022 RBA 0.25% increase to 0.15% (effective 1 July 2022) and also deferred the 7 June 22 RBA 0.50% increase to 1 August 22, and only passed on 0.35% to Basic Variable loan products.
On the deposit side, we also passed on various increases on our Savings accounts and Term deposit products.
As a member-owned bank – run on behalf of our members, who are customers and equal owners – our purpose is to benefit the people who bank with us, not to extract profit from them and distribute it to outside shareholders. Profits generated are re-invested back into the business to benefit our members and their communities.