Big banks battle it out

by AB25 Feb 2014
The consumer’s mortgage dollar is being fiercely fought over by banks in what could be the biggest battle in two decades, one industry expert has said.  

Australian Finance Group general manager of sales Mark Hewitt said banks were competing heavily for borrowers, who were negotiating loans at historically low rates, reported

“In our 20 years of business it’s probably the most competitive environment we’ve ever encountered,” he said.

Some banks are currently offering rates as low as 4.49%, with many undercutting to ensure the best deal around.

Macquarie Bank has whacked 1.01% off their standard variable rate for loans between $500,000 and $750,000, while Commonwealth Bank is offering 0.85 percentage points off the same loan amount.

NAB is currently giving 0.94 percentage points off loans between $500,000 and $750,000 through their Homeside group, bringing the rate down to 4.97%, and ANZ is taking 0.85% off loans of more than $500,000.

Smaller banks are also joining the fray – Suncorp recently announced a 1.15% interest rate discount for lending over $500,000 and a 1.2% discount for lending over $750,000. The new rates are 4.84% and 4.79% respectively, and are both available for eligible lending of 80% LVR and below.