Aussie has announced a reduction to its two-year fixed rate by 0.25% to 4.64% – which the aggregator claims undercuts the major banks by 0.25%.
Aussie has also lowered its three-year fixed rate to 4.89%, while the four and five-year fixed rates are now 5.34% and 5.44% respectively – and has passed on last week’s rate cut to its Aussie variable products as well.
The 0.25% rate drop by Aussie represents a saving of about $46 a month, based on a $300,000 home loan, and the group’s executive chairman, John Symond, says the ‘time is ripe’ for both first home buyers and investors to start buying.
“There are now more than 700 suburbs across Australia where it is cheaper to service a principal and interest mortgage than rent, while many lenders are competing aggressively for new business,” says Symond.
“I believe the property markets in many areas around Australia are on the move again and with rates at historic lows, the time is almost perfect for first and next home buyers, as well as investors, to get out there and secure a property.”
The new rates are effective for new and existing borrowers from Friday August 16, 2013.