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- MyState (MYS) has announced support measures to help home loan and business customers affected by COVID-19
- MyState has made changes to reduce fixed home loan rates, lighten the load for businesses, and provide financial support for those who are struggling
- CEO Melos Sulicich has put his resignation on hold to help the banking and wealth management company
- Melos was due to leave at the end of June but will stay with the company for a further 18 months
- At market close, MyState is up 0.61 per cent and trading at $3.31 per share
MyState (MYS) has announced support measures to help its home loan and business customers as COVID-19 puts pressure on the economy.
From reduced lending rates to allowing for deferred payments, MyState Banks — the banking arm of MyState — is doing its best to lighten the financial load on its customers.
CEO Melos Sulicich said the company wants customers to know that “we’re there for them”.
“This is an unprecedented situation and we recognise the great uncertainty that our customers are experiencing. We want customers to know that we’re there for them,” he said.
“In response to initiatives announced by the Federal Government and the Reserve Bank, we have made changes that reduce fixed home loan rates, lighten the load for businesses and provide financial support for those who may be experiencing hardship,” he added.
Home loans
MyState Bank has reduced lending rates for fixed-rate home loans from 31 March 2020 by up to 0.80 per cent, with its fixed-rate home loan for one-to-three year loan terms with a loan to valuation (LVR) ratio of less than 80 per cent reducing to 2.39 per cent.
These rates will also be available for eligible borrowers under the First Home Loan Deposit Scheme. Variable home loan customers will continue to receive the bank’s
lowest-ever rates, with the previously announced rate cut of 0.25 per cent taking effect on 31 March.
Business loans
From March 31, business customers will also receive further reductions, on top of the previously announced rate cut of 0.25 per cent. Changes will be:
- 1.00 per cent interest rate cut for business loans with residential security
- 1.00 per cent interest rate cut for business loans with commercial security
- 1.55 per cent interest rate cut for business overdrafts
- 1.55 per cent interest rate cut for personal overdrafts
Other measures
MyState also has put in measures to support those who may be experiencing financial hardship due to the virus.
The bank will allow customers with home, personal or commercial loan to defer their payments for up to six months. On top of this, the company will allow early access to Christmas Accounts without penalty.
The company will raise the maximum threshold on its high-interest Bonus Saver Accounts from $150,000 to $250,000.
Customers will also be able to redraw any amount from $1 on home and personal loans, with fee-free redraws in-branch or online.
For business customers, it will allow early access to Term Deposit Accounts
“MyState is a pillar of the local community and we’re committed to helping our customers weather the storm. This is the most challenging event of our generation and we urge customers experiencing hardship to contact us for support,” Melos said.
CEO to steer the ship
Melos has put his resignation on hold to help the banking and wealth management company stay steady during coronavirus uncertainty.
Melos’ last day at MyState was slated for the end of June, but given the uncertainty of the present time, he agreed to stay on.
Chairman Miles Hampton said the Board are delighted that Melos has agreed to stay on.
“Melos knows our business very well and his ongoing leadership will ensure we get through this challenging period as a strong bank, focused on our customers and our communities,” Miles added.
Melos will stay with the company for at least 18 months.
At market close, MyState is up 0.61 and trading at $3.31 per share.
