22nd August 2007
Increase in Crediting Rates
We are pleased to announce that the crediting rates for our Cash & Mortgages Option and
Pooled Mortgages Option will be increasing by 0.25%, with effect from 1 September 2007.
The new crediting rates will be:
Cash & Mortgages Option 6.35%* pa
Pooled Mortgages Option 7.50%* pa
These increases follow the increase in official interest rates announced by the Reserve
Bank on Wednesday 8 August 2007.
An increase in official interest rates by the Reserve Bank affects most directly borrowers
who have variable rate loans. Financial institutions and lenders like La Trobe generally
pass on these increases to borrowers. Those borrowers fortunate enough to have fixed rate
mortgages are not immediately affected by these interest rate rises.
In determining the crediting rates that we pay to investors in La Trobe’s mortgage fund,
we take into account the extent to which we can pass on increases in official interest
rates to borrowers from the fund. In the current situation, we felt confident to increase
the crediting rates for the Cash & Mortgages Option and the Pooled Mortgages Option by the
same amount as announced by the Reserve Bank.
You will appreciate that when interest rates are on the rise, it can, as Charles Dickens
wrote, be the best of times and the worst of times. If you are lucky enough to be an
investor in these times, you can benefit from the increases in interest rates. If, on the
other hand, you are a borrower, your interest repayments are likely to increase.
With these new crediting rates, we believe that you will find La Trobe’s mortgage fund to
be even more competitive, and the increase in rates for investors, along with the strong
independent ratings^ from Property Investment Research and Standard and Poor’s, confirm
La Trobe’s mortgage fund as a premium investment option.
If you have any queries regarding these increases in the crediting rates, please do not
hesitate to contact us on 1800 707 707.
*The rates of return from the Fund are not guaranteed and are determined by the future
profits of the Fund. ^Property Investment Research and Standard and Poor’s Ratings reports
are available from our website www.latrobefinancial.com.au
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Head of Funds Management
t +61 3 8610 2811
Chris Andrews is the Head of Funds Management for the La Trobe Group and has responsibility for the La Trobe Australian Mortgage Fund.
Read full profile here.
La Trobe is one of Australia's leading independent specialist mortgage Financiers. Its business includes residential mortgages, commercial mortgages, and investment services operating one of Australia's largest Mortgage Funds under AFSL 222213. It employs over 115 staff and has raised over AUD$10Billion to assist over 100,000 customers since inception in 1952.
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