No end in sight for fixed rate cuts

by Adam Smith31 Jul 2014
Two more non-majors have cut fixed rates, taking rates on market even further below 5%.

ME Bank has announced cuts to its five year fixed rate. The bank trimmed 45bps from its five year rate to bring it to 4.94%. The bank claims that the rate - along with its three year rate of 4.69% - is the lowest on market.

"While the big four claim credit for cutting rates to new lows, the truth is ME Bank’s three and five year fixed rates are much better, and borrowers don’t need to pay an extra package fee to get the lower rate – we’re offering 4.94% on our non-package 5-year fixed home loan,” ME Bank CEO Jamie McPhee said.

Suncorp has also announced cuts to its five year fixed rate. The bank cut 66bps from its five year rate, bringing the rate to 4.99% on its Home Package Plus product, or 5.14% as a standalone rate. The rates are available for loans of 90% LVR and below, including LMI.

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