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Judo Business Lending Rates

Judo Market Base Rate as at 1st September 2020: 0.39% p.a.

How is the Judo Market Base Rate Calculated?

The Judo Market Base Rate is repriced monthly. It is current as of the 1st of each month.

The Judo Market Base Rate is the rate as reasonably determined by Judo, by reference to the BBSY (BBSW Bid Rate), Judo’s funding costs and the prevailing market conditions.

For further information please contact your Director Relationships.

Historical Judo Market Base Rate

Effective Date Judo Market Base Rate (% p.a)
1 September 2019 1.10% p.a.
1 October 2019 1.07% p.a.
1 November 2019 0.95% p.a.
1 December 2019 0.88% p.a.
1 January 2020 0.91% p.a.
1 February 2020 0.85% p.a.
1 March 2020 0.85% p.a.
1 April 2020 0.46% p.a.
1 May 2020 0.15% p.a.
1 June 2020 0.14% p.a.
1 July 2020 0.39% p.a.
1 August 2020 0.39% p.a.
1 September 2020 0.39% p.a.
Judo Market Base Rate (% p.a)
Effective Date
1 September 2019 1.10% p.a.
1 October 2019 1.07% p.a.
1 November 2019 0.95% p.a.
1 December 2019 0.88% p.a.
1 January 2020 0.91% p.a.
1 February 2020 0.85% p.a.
1 March 2020 0.85% p.a.
1 April 2020 0.46% p.a.
1 May 2020 0.15% p.a.
1 June 2020 0.14% p.a.
1 July 2020 0.39% p.a.
1 August 2020 0.39% p.a.
1 September 2020 0.39% p.a.

ASX Disclaimer

BBSW® is a registered trademark of ASX Benchmarks Pty Limited and its related bodies corporate (collectively, “ASX”). ASX owns all proprietary rights in the BBSW benchmark rate data and End of Day BAB data (together, “ASX Benchmark Data”).

ASX does not guarantee the timeliness, accuracy or completeness of any data or information relating to the ASX Benchmark Data. ASX makes no warranty, express or implied, as to the ASX Benchmark Data or any data or values relating thereto or results to be obtained therefrom, and expressly disclaims all warranties of merchantability and fitness for a particular purpose.

To the maximum extent permitted by law, the ASX Benchmark Data is provided “as is” and ASX, its licensors, and its and their respective employees, contractors, agents, suppliers and vendors shall have no liability or responsibility whatsoever (whether in negligence or otherwise) for damages, claims, losses or expenses - whether direct, indirect, consequential, incidental, punitive or otherwise - arising in connection with the ASX Benchmark Data, including but not limited to losses or expenses caused by errors or delays in calculating or disseminating the ASX Benchmark Data.

Your right to use the ASX Benchmark Data is governed by your agreement with ASX regarding the ASX Benchmark Data. If you do not have an agreement with ASX, all ASX Benchmark Data is provided for your information and personal use only, and is not intended for trading purposes or advice.

ASX BBSW Disclaimer see: www.asx.com.au/services/benchmark.htm

Early Repayment Costs

At Judo, we fund our customer’s fixed rate loans based on an expected loan term, repayment frequency and repayment amount. If you choose to repay your fixed rate loan early, an Early Repayment Cost may arise. An early repayment cost is our reasonable estimate of the difference between what we would have earned had you not repaid all or part of your fixed rate loan, and what we can earn from re-lending the pre-paid amount.

Why do Early Repayment Costs arise?

To determine if Judo has incurred any loss as a result of an early repayment, we look at the differential in the wholesale interest rate between the day the fixed rate loan was entered into, and the date of early repayment. This is because Judo’s funding costs are largely determined by wholesale interest rates. If the wholesale interest rate on the day of early repayment is less than the wholesale interest rate at the start of the fixed interest rate period, a loss will be incurred by Judo. This loss arises as Judo needs to re-lend the pre-paid amount to a different customer, all the while continuing to pay interest at the relatively higher interest rate. This cost is an estimation as we manage our funding on a portfolio basis.

What will determine the amount?

Early Repayment Costs are determined by several factors, including:

  1. The amount of the loan being repaid early
  2. The remaining fixed interest rate period of the loan
  3. Your contracted loan repayments
  4. The difference in the wholesale interest rate between the day the fixed rate was entered in to, and the day of the early repayment. The Early Repayment Cost calculation can be provided on request. Should you be considering repaying your fixed interest rate loan early, please contact us.

An Example:

  • A Judo customer borrows $500,000 in an interest only facility at a rate of 5.45%, fixed for 5 years. Repayments are to be made monthly. Judo's underlying wholesale interest rate for this deal was 2.95%.

  • After one year, the customer would like to repay their loan in full. The prevailing interest rate for a 4 year fixed rate is 4.5%, and Judo's wholesale interest rate for the same period is now 2.00%.

  • Based on this, the wholesale interest rate has decreased by 0.95% indicating that the market value of this money has decreased. Judo will look to re-lend this repaid money to another customer, however it will have to do so at a relatively higher cost so that Judo does not break its own funding position.

  • Judo calculates its early repayment amount using the following formula: Early Repayment Cost = Principal remaining * Wholesale Interest rate differential (per period) ^ Number of remaining repayments

  • Using the values from the above example, $500,000 * (0.95%/12) ^ 48 = $19,357.80 total for the remaining four years.

© Judo Bank™ 2019 | All Rights Reserved | Judo Bank Pty Ltd | ABN 11 615 995 581 | ACL and AFSL 501 091 | This information is of a general nature only and does not take into account your objectives, financial situation or needs. In particular, you should seek independent financial advice and read the relevant terms and conditions and relevant product documents prior to making a decision. | Past performance is not an indication of future performance. | Eligibility criteria, fees and charges and terms and conditions may apply to Judo Bank’s products and services