Customers identified for the margin adjustments are on rates below the market. The margin adjustment will bring the loan accounts in line with market and onto competitive rates. 

The margin adjustment is effective 13 November 2023, which is the same date that the 0.25% Reference Rate increase following the Reserve Bank of Australia’s (RBA) cash rate decision of 7 November 2023 is being applied to all customers.

• Email notification on the day it takes effect, 13 November 2023.
• Repayment change letter delivered in line with each customer’s communication preference on or before 27 November 2023.

In this case, we are decreasing margins, which means the customer’s interest rate will increase. See below:

For example, if we decrease a customer’s margin it will increase their variable interest rate.
I.e., If a customer’s reference rate is 9.00% and their margin is -4.00%, their variable rate is 5.00%
(the above calculation is 9.00% – 4.00% = 5.00%).
If we decrease their margin to 3.80%, their variable rate increases to 5.20%.
(the above calculation is 9.00% – 3.80% = 5.20%). 

The margin adjustment will increase loan repayments. Those new repayments are effective from 2 January 2024 to align with the Reference Rate repayment change. The amount of your new repayments will be outlined in the repayment change letter sent to you on or before 27 November 2023.

More information on changes to variable interest rates following the RBA’s recent increase to the cash rate is available here.

You can find more information on the support available on our Financial Hardship assistance page.