Home News Banks cut showcase fixed mortgage rates

Banks cut showcase fixed mortgage rates

Font size :

HSBC, Bank of Queensland, National Australia Bank and New Zealand Banking Group have slashed their showcase fixed rate mortgage deals to build market share and lock-in property buyers before another cut in official rates.

ANZ cut its owner-occupier two-year fixed rate from 4.59 per cent to 4.14 per cent. Bank of Queensland also dropped its three-year fixed rate owner-occupier to 3.69 per cent. HSBC slashed its one to three-year rates from 16 basis points to 26 basis points. NAB also cut its one, two, three, four, and five-year terms for owner-occupiers.

Smaller lenders, like Newcastle Permanent, have also announced even lower rates and no extra charge to investors. Other lenders are expected to follow because high levels of housing debt mean lenders are increasingly switching to cheaper deals.

On the other hand, lenders like the Teachers Mutual Bank and BankWest have stopped some of their fixed rate offers to avoid going over the 10 per cent speed limit imposed by the Australian Prudential Regulation Authority. This creates an opportunity for competitors to build market share and offset the potential loss of business following foreign lending crackdown.

According to Canstar, lenders are competing for the lucrative fixed term borrowers, typically for two and three-year terms. Three-year rates are the most popular, accounting for one-fifth of the searches in Canstar’s website.

Meanwhile, lending growth remains strong at around seven per cent, well above income growth. Lenders are also locking in at current funding rates.

“Strong housing sector growth may limit the Reserve Bank of Australia’s ability to cut the cash rate unless tighter macro-prudential measures are exposed,” said Martin North, principal of Digital Finance Analytics.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate

The sprawling redevelopment aims to boost the supply of affordable housing in Sydney Read more

A new suburb will be built in west Melbourne A new suburb will be built in west Melbourne Mount Atkinson will become home to more than 22,000 people over the next 15 years ... Read more

Surging house prices threaten liveability in Melbourne Surging house prices threaten liveability in Melbourne Analysts warn the city could become just as unaffordable as Sydney, if property trends continue ... Read more

More Aussies would benefit from regional hubs linked to cities More Aussies would benefit from regional hubs linked to cities Shorter commutes could spur higher home sales in regional towns, analysts say ... Read more

More mortgage news and articles

Sponsored Links

Sunday, Aug 20, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords