Fixed rate war continues with more cuts

by Caroline Dann26 Sep 2012

St George and Liberty Financial have both announced fixed rate cuts, which is yet another indication of increased competitiveness in the fixed rate field.

St George is reducing its three-year fixed rate for its Advantage Package to 5.49%, only a week after cutting its one and two-year rates.
“We were already leading the major banks with our competitive fixed rates across one, two, three, four and five years. Today’s announcement…really cements our market leading position against the majors for the popular three-year fixed period,” said Andy Fell, general manager of St George retail banking.
Liberty Financial is cutting its one, two and three-year fixed rates, to start at 5.79%.
Liberty’s national sales manager, John Mohnacheff, confirmed it was the lender’s third cut in four months.
Meanwhile, mortgage manager Australian First Mortgage announced it was reducing its fixed rates earlier this week.
AFM's national head of sales Clint Hawthorne said the move was not only to compete with the current spate of rate cutting, but to "reward loyalty."
"Given that we only deal with mortgage brokers, it’s also a great opportunity to go back and reward those brokers who are supporting us," he told Australian Broker Online.
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