Adelaide Bank is following trend and dropping its three and four year fixed home loan interest rates from Thursday.
Its three year SmartFix product has been 5.19% and will be 5.09%, and its four year product of the same name has been 5.59% and is dropping to 5.39%.
The bank’s SmartDoc three year fixed rate has been 6.19% and will be 6.09% and its SmartDoc four year rate is moving from 6.59% to 6.39%.
New rates are for home loan applications from Thursday.
According to the Australian Bureau of Statistics show, fixed rates dropped from 20.6% of all loans settled in April 2013, to 15.3% in January 2014. This came as a surprise to many in the mortgage industry, as common opinion put them to rise.
“Despite further fixed rate cuts in recent months, which have taken many by surprise, we expect to see variable rates continuing to dominate as the first choice for borrowers in the foreseeable future,” Homeloans sales general manager Greg Mitchell told Australian Broker
Homeloans has cut its three year MoniPower rate by 10 basis points to 5.29% and its four year MoniPower rate by 20 basis points to 5.59%.
The low-doc three year MoniPower rate has fallen by 10 basis points to 6.39% and the low-doc four year MoniPower has been cut by 20 basis points to 6.69%.