Interest rates are forecast to climb before the year is out, but one bank is bucking the trend.
BankWest announced it will reduce its three and five year fixed rate home loans from today.
Its three year standard fixed mortgage rate will be reduced from 7.64% to 7.38% pa, while its five year standard fixed rate home loan rate will also be cut from 8.09% to 7.89%.
A BankWest spokesperson said the move was designed to make the lender more competitive with its Big Four rivals.
While its one-year and two-year fixed rates (6.99% and 7.49% respectively) still place it at the more expensive side of town, BankWest’s new three-year and five-year fixed rates make it competitive with any of its rivals.
Only the NAB Fixed Intro product, at 7.19%, is a cheaper three year fixed rate, while BankWest’s five-year rate is lower than ANZ, CBA, NAB, St. George or Westpac. Interestingly, at 7.89%, BankWest’s five-year fixed rate is less than its four-year fixed rate (7.99%) – the only lender with this anomaly.
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