Following the Reserve Bank’s cut to official interest rates on 4 June 2019, First Option commenced a review into the pricing of both its deposits and loans.
As a member-owned bank, First Option has considered the impacts of a rate change on both depositors and borrowers.
It is also important to note that First Option has not changed its mortgage rates (for existing borrowers) since August 2016; almost 3 years ago! During this time, the big banks have quietly increased selected rates a couple of times, due to regulatory pressures.
Following the review, First Option has made the following decisions:
New applications effective 14 June 2019. Existing loans effective 1 July 2019.
The above rates apply to Principal and Interest (P&I) loans. For Interest-Only loans please add 0.20%.
New applications effective 14 June 2019. Existing loans effective 1 July 2019.
Please add 0.20% for Interest-Only loans.
While other First Option mortgage rates will remain unchanged, they are still very competitive in the market place. This is because First Option did not increase their Investment Loan and Interest Only Loan rates when the big banks raised them in the past.
Remember also that rate is not the only factor we consider when we design our mortgage loan products. Our members also save money and interest with the following features.
And for members with a First Option Home Loan Package:
For more information, download the full Interest Rate Schedule.