IMB Changes Interest Rates

IMB Building Society announced today (20 February 2012) it would lift its standard variable home loan interest rate, effective 27 February, joining a number of other mutual organisations that increased their rates last week.

IMB’s standard variable home loan rate will increase by 0.09%, remaining lower than the four major banks’ standard rates by an average of 0.29%. IMB’s standard variable home loan rate has been lower than the major banks standard rates for more than three years.

Based on current rates, an IMB member with a $300,000 standard variable home loan would be over $17,000 better off when compared to the average of the major banks’ standard variable rates.

IMB CEO Robert Ryan said it was always a difficult decision to increase home loan interest rates but as a mutual organisation, IMB needed to consider all members including depositors, who comprise 80% of members.  

“IMB needs to act in the best interests of all our members, including our 150,000 depositor members. This decision, while a very difficult one to make, was necessary to enable us to continue to offer competitive rates on our deposit products,” he said.

IMB also announced an increase to its Reward Saver introductory rate to 5.75%p.a. and the continuation of highly competitive 3 and 6-month term deposit rates, effective immediately.

The home loan rate changes will impact members’ repayments from May, 2012.