Fixed mortgage rates have fallen amid increased competition among lenders for the owner-occupier market.
According to RateCity financial analyst Peter Arnold, fixed rates are generally trending downwards, but not by a huge amount, reports The Australian.  
He said fixed rates had fallen to as low as 3.3% for a one-year term.
"If you're switching providers just to get that rate for one year make sure you're comfortable with the overall deal you're getting because one year isn't a huge amount of time in the grand scheme of a mortgage", he was quoted as saying.
This is seconded by Canstar commentator Justine Davies, saying “certainly in the one-year fixed rate there's heaps of loans under 4%”.
"Fixed rates have trended down in line with the cash rate reduction, but not by more than the cash rate reduction", she said.
The experts also noted that there are still a number of variable rates sitting under 4% which borrowers could take a look at.
"Standards are tightening up on lending to investors, therefore it stands to reason that there's increased competition to get the owner occupiers,” Davies said.
Meanwhile, AFG, Australia’s largest mortgage broker, is predicting a more aggressive competition among banks focusing on the owner-occupier market, making it more favourable for borrowers next year. 
The broker’s managing director Brett McKeon said: "I think the owner-occupier end of the market's going to be quite fiercely contested over the next 12 months and that's probably where most of the focus will be. It's hard to see better terms than what you've got but I think it might be possible."
He also said that it will be no surprise if the banks start to undertake further discounting in terms of upfront rates, application fees and ongoing fees.