Following the recent extraordinary cut to the Reserve Bank’s cash rate and the unprecedented impact of coronavirus, People’s Choice has announced changes to rates and new measures to support members.
More support for those affected by Coronavirus
People’s Choice understands that many households are significantly affected by Coronavirus. We have introduced the following measures to support members as we work through these difficult times together:
Home loans and personal loans
Members facing financial difficulties due to impacts of Coronavirus may defer repayments for up to six months, with a review after three months. This is aimed at reducing the immediate stress members may face.
Members may also redraw on any advance they have on their facilities – even for fixed rate loans. We also remind members that they may reduce their repayments to the minimum during these times to better manage their cash flow.
Small business support
Business members may also defer repayments for up to six months with a review after three months if they are facing additional challenges as a result of Coronavirus. We will also defer annual reviews for the next six months to allow our business members to focus on what is important at this time: their business.
More support online
People’s Choice has launched an online hub to support members during this challenging period. Details of our coronavirus support, our financial hardship measures and other useful links can now be found here.
We will continue to update this hub to support our members.
New interest rates for lending and investing
People’s Choice has adjusted rates following the recent extraordinary cut to the Reserve Bank’s cash rate. While the cash rate is a key influence on our rates, we also consider regulatory requirements, funding costs and market demand when setting our rates. We have also considered the impact of coronavirus and believe these rates achieve those aims.
Reduced rates for home loan packages – owner-occupied and investor packages
People’s Choice will be cutting its fixed rate home loan packages by between 60 and 70 basis points from 26 March 2020. Members can access a rate of 2.29% per annum for a one-year fixed home loan – down from 2.89% per annum – or a rate of only 2.19% per annum for a two-year fixed loan.
These same cuts will flow on to our interest-only fixed-term loans, and our fixed-term investor loans for both principal and interest and interest-only.
Reduced rates for business banking variable facilities
People’s Choice is reducing its variable rates for business loans by 100 basis points. Rates for fixed term loans will be cut by up to 100 basis points for commercially-secured loans, and by up to 50 basis points for residentially-secured loans, excluding all business vehicle loans.
New rates for term investments
Investments of between 9 and 12 months will now attract interest of 1.70% per annum from 25 March 2020 – a boost of between 30 and 40 basis points. People’s Choice will also allow monthly interest payments on 12-month investments to be paid to another People’s Choice account to make life easier in coming months.
People’s Choice is now offering 1.30% per annum for all term investments of between 3 and 8 months.
Full details of our current rates can be found on our website at peopleschoicecu.com.au/rates.