Mutual lender, Newcastle Permanent Building Society has cut its three-year fixed rate home loan below 4%.
The lender is now offering its three-year standard fixed interest rate at 3.99% – a 20 basis point reduction off its old rate. The new rate came into effect Friday 27 March.
Acting CEO, Andrew Yost said the rate is unheard of in the Australian mortgage market.
“We believe that this may be the lowest three year fixed rate home loan ever offered by a major Australian banking institution,” he 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.”