Variable Home Loan Interest Rate Changes

Community First will be passing on rate cuts to borrowers with variable home loans by at least 0.10%p.a. on 30th March 2020.

There are also some further planned changes that will result in additional rate reductions for existing loan holders.

This includes:


  • For members receiving our standard variable loyalty discount, we will be increasing your life of loan discount of 0.70%p.a. to 0.80%p.a. This is in addition to the rate reduction mentioned above.
  • For Accelerator Package Loan holders currently receiving a discount of 0.80%p.a. off the standard variable rate as your original loan amount was less than $250,000, we will be removing this tier and granting you an additional discount of 0.10%p.a. This is in addition to the rate reduction mentioned above.
  • For members on the retired True Professional Home Loan package, we will be aligning your discount off the standard variable rate to the standard discount of 0.90%p.a. which will result in rate reductions between 0.08% to 0.46%p.a. This is in addition to the rate reduction mentioned above.

The additional changes above will occur separately to the 0.10%p.a. rate reduction and if you are impacted, we will be in contact with you soon to let you know what you need to do.

Fixed Interest Rate Changes

We are also reducing our fixed rates between 0.10%p.a. and 0.30%p.a. from 18th March 2020.

Community First will also be introducing a new fixed rate Accelerator package option in the second half of March which will give members a discount of 0.15%p.a. off our standard fixed pricing, plus a range of other banking benefits and discounts. These changes provide access for existing members to fixed interest rates below 3%.

Understanding the RBA Rate Cut

To be clear, the cash rate set by the RBA is the official rate banks charge each other for overnight borrowings to balance their books. As the credit union is primarily funded by Members’ deposits, any movement’s in the official cash rate does not have the same effect on Community First as it would a major Bank which relies much more heavily on external borrowings to fund its Balance Sheet and needs to make bigger profits to pay external shareholders. The RBA cash rate therefore isn’t an accurate reflection of our cost of funds and is not the sole determinant of our product pricing. Our product pricing aims to take in to account a variety of factors such as our cost of funds, the interests of both loan and deposit holders, market competitiveness and our operating costs, to name a few.

Have a question about your home loan?

We encourage you to talk to us if you require more clarification, your circumstances have changed or you’d like to know what other options are available for your home loan.

Last updated: 21 March 2020

The information contained in this article is only correct at the point of time of publication. It is general information and has been prepared without taking into account your personal circumstances, objectives or needs. Please consider if this information is right for you before making a decision to acquire any product.