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Key points

  • New three-tiered Loan to Value Ratio pricing structure launched for OMG Owner Occupier Principal & Interest variable home loan product.
  • Interest rate reduction of 0.15% to 2.29% for loans with an LVR equal to or below 60%.
  • Interest rate reduction of 0.05% to 2.39% for loans with an LVR greater than 60% and less than or equal to 80%.

Customer-owned bank bcu has announced the launch of an updated tiered pricing model for its OMG Home Loan, that will see eligible customers benefit in an interest rate reduction of up to 0.15% p.a.

From Wednesday 25 August, three tiers of pricing will be available for OMG Owner Occupier Principal & Interest Home Loans, with the Loan Value Ratio used to determine the pricing tier a customer is eligible to access as outlined below.

Loan to Value Ratio (LVR)

Pricing Tier

Variable and Comparison rate

Less than or equal to 60%

1

2.29% p.a.

Greater than 60% and less than or equal to 80%

2

2.39% p.a.

Greater than 80%

3

2.44% p.a.

In announcing the new pricing tiers bcu Senior Retail Distribution Manager, Adam Cross confirmed the new interest rates would be made available to both new and existing bcu loans.

“Our new tiered pricing allows us to offer more value to new and existing customers with an LVR below 80% on their loan. When the tiered pricing went live, over 700 existing bcu customers automatically benefited from a rate reduction of between 0.05% and 0.15% p.a.,” Mr Cross said.

“The past few years have been financially challenging with the ongoing COVID-19 situation and various natural disasters across our regions, and we’re glad to be able to offer this rate reduction at a time when the community needs it.

“As a customer-owned bank, we are not here to make profits for third party shareholders and we are proud to be able to return as much profit as possible through our competitive product offering.”

“We’ve also reduced the minimum loan amount for an OMG home loan to $100,000, further increasing the number of customers who can access this competitive offering.”

For more information, including full terms and conditions, visit bcu.com.au

Credit products issued by Police & Nurses Limited (bcu) ABN 69 087 651 876 AFSL/Australian Credit Licence 240701. Lending criteria, terms & conditions, fees & charges apply. Rates subject to change.

Comparison rate calculated on a loan amount of $150,000 over a term of 25 years based on monthly repayments. These rates are for secured loans only. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different Comparison Rates.