Greater Bank has confirmed it will follow Newcastle Permanent in passing on the full rate hike announced by the Reserve Bank.
From June 16, new and existing Greater borrowers will see a 0.5 per cent increase across Great Rate, Ultimate and Standard variable rate products for both owner occupied and investment loans, as well as business loans and all line of credit products.
The Reserve Bank of Australia on Tuesday, June 7, announced a cash rate increase of 0.5 per cent, taking the official rate to 0.85 per cent.
On Thursday afternoon Newcastle Perm said it would be passing on the increase, a move followed by Greater Friday evening.
Greater depositing customers will see a rate rise of of between 0.5 and 1.00 per cent on a range of term deposits. Greater Bank CEO, Scott Morgan, said the changes were "an opportunity to increase the return" for depositing customers.
"Particularly those who are self-funded retirees or rely on interest from their term deposits as a major source of income," Mr Morgan said.
"This group has been disadvantaged from record low rates over the past three years."
Greater Bank is headquartered in Newcastle and services more than 270,000 customers across NSW and South-East Queensland.
Mr Morgan said while it is the second rate increase in as many months for home loan customers, around 75 per cent are more than a month in advance on repayments.
"At the same time, we acknowledge that there may be some customers experiencing financial difficulty at this time and encourage anyone struggling to meet their home loan commitments to contact us to on 13 13 86 to discuss their options."
