Lenders battle for 'lowest rates' claim

by Caroline Dann17 Oct 2012

Two lenders have slashed their fixed rates, with both claiming to have 'the lowest rates in the industry.'

Citibank cut its five-year rate by 20 basis points yesterday, bringing it to 5.59%, which it says is "the lowest in the Australian market."
Meanwhile, non-bank lender Advantedge cut its one and two-year fixed rates yesterday to 4.99%.
It comes a month after St George cut its one and two-year rates to 5.39%, at the time claiming to have the industry's 'lowest rates.'
Citibank's head of mortgages, Vibha Coburn, said the fixed rate war would potentially lift consumer confidence enough to encourage homebuyers back into the market.
“A fixed rate home loan provides the benefits of lower fixed repayments, certainty of payment and an opportunity for consumers to improve cash flow management," she said.