Bendigo Bank reduces variable home loan rate

Bendigo Bank will decrease its residential variable home loan interest rate by 0.20% p.a. to 5.56% p.a.

Bendigo and Adelaide Bank Managing Director Mike Hirst said the adjustment aims to find a fair balance for all of the Bank’s key stakeholders.

"When setting interest rates our Bank needs to consider many factors and carefully take into account the needs of our stakeholders including borrowers, depositors, staff, shareholders, partners and the broader community," Mr Hirst said.

Customers with a variable home loan of $400,000 will see their repayments decrease by $48 a month (principal and interest home loan over 30 years).

The historically low interest rates will also impact deposit holders, and Mr Hirst noted the challenges the decrease will generate for those looking to earn money through investment in deposits.

"These customers are front of mind for our Bank as we seek to strike the right balance between the needs of borrowers and depositors," he said.

The adjustment is effective 25 May 2015 for new and existing loans.