Greater Bldg Society passes on rate rise

The Greater Building Society on Thursday passed on in full this week's quarter of a
percentage point increase in the cash rate by the central bank.
The NSW-based Greater is one of the nation's biggest building societies.
Chief executive Don Magin said that despite the cost of funding being higher for
non-banks like the Greater, it had decided to "put people before profits and only
pass on the official cash rate increase" by the Reserve Bank of Australia (RBA).
Mr Magin said that the Greater's standard variable rate would increase by 25 basis
points to 7.30 per cent and its Great Rate Home Loan (basic home loan) would rise to
6.94 per cent.
"As a mutual we serve our members, not shareholders, which is why the Greater is
prepared to sacrifice profits for the benefit of its members," Mr Magin said in a
statement.
The new home loan rates are effective from November 5 for new borrowers and November
15 for existing borrowers.
Commonwealth Bank of Australia on Tuesday raised its variable mortgage rate by 45
basis points, almost double the 25 basis point increase in the cash rate announced
by the RBA.
The Commonwealth Bank's move sparked community and government outrage, although the
other three major banks have yet to announce whether they will increase their
interest rates and by how much.