Newcastle Permanent Building Society has unveiled a new three-year fixed rate home loan that is a notch below 4%.
They will start offering the rate at 3.99% on 27 March, which is 20-basis points off its previous rate.
“We believe that this may be the lowest three year fixed rate home loan ever offered by a major Australian banking institution,” the mutual lender’s chief executive Andrew Yost said.
“Given the three year fixed term is the most popular among people who prefer the certainty offered by fixed rates, this is a major win for home loan customers, and once again we’re confident the major banks will find Newcastle Permanent tough to beat.
“Until today, a fixed interest rate of 3.99% p.a. for three years has been unheard of in Australia, but given the historically low official cash rate, we’re proud to lead the retail banking industry to set historically low rates of our own.”