Current lending conditions have created a ‘perfect storm’, with three-year fixed rates hitting their lowest level in more than two decades, according to ME Bank CEO, Jaimie McPhee.
“Banks are desperate to lend and are waiving fees, offering cash back, and are pricing fixed rates at record lows to win customers,” he says.
ME Bank itself has reduced its three-year fixed Super Member Home Loan (SMHL) standard laon rate to 4.69% p.a.
“Credit growth has continued to sit below 5% and banks have ample funds to lend due in part to higher customer savings rates and higher loan repayments. Add in a record low cash rate and you’ve got a recipe for strong competition between banks.”