Mortgage Variable Rate Policy Statement

Mortgage Variable Rate Policy Statement


 Warning: We may change the interest rate on this loan. This means the cost of your monthly repayments may increase or decrease.


The purpose of this document is to summarise clearly the credit union’s policy for setting our home loan variable interest rates. This document is intended for information purposes only so there is no action required from you.

How do we review and set our interest rates?

As a rule, the Board of Directors will review our interest rates annually, at the same time we review all our loan products for members. However, this doesn’t prevent the Board from carrying out a review at any time if needed. 

What factors may result in changes to the variable interest rate?

Variations or changes in the following factors may result in a change to our variable interest rates:

Cost of funds to the credit union



The cost of having money to lend to members

In order to lend to our members, the credit union needs to source funding. Our source of funds for home lending are members funds and therefore within the control of the Board of Directors to manage.  The credit union’s existing home loan borrowers will be less exposed to ECB changes, as funds are not being borrowed from the financial markets, resulting in less sensitivity to interest rate movements. 

Acquisition costs.



The cost of providing the home loan to our member


These costs cover the administration and legal costs from application to drawdown of the home loan. Also included are costs relating to marketing of the product and incentives for members, such as paying for the property valuation.

Service costs



The cost of managing the account until the loan is cleared


Service costs cover the ongoing management of the home loan from drawdown to the point where the loan is paid off.

Recovery costs & Bad Debts



The cost of covering the credit union’s risk of unpaid loans


Recovery costs arise from the management of a home loan that has gone into arrears and the cost based on the likelihood of default (how many members might not pay back their loan) and the level of member’s funds that could be lost.

A significant increase in the cost of providing the home loan product, may result in an increase in our interest rate.

Why do we have different interest rates?

The credit union’s Home Loan product is simple, with two options offered, principle private residences for First Time Buyers and Non-First Time Buyers. Taking a risk-based approach, we offer different variable interest rates for these two categories.


This Statement will be published on our website at for your information.

Changes to this Statement

Where we make a change to this statement, we will provide members to whose home loans this statement applies to, with a notification, on paper or on another durable medium, setting out the changes, and make available the updated statement. Last updated July 1st 2019