St George and Bank of Melbourne are following their parent bank’s lead by decreasing their three year fixed rate for new customers as well as existing customers switching into a new fixed rate.
The previous rate, including portfolio, low doc and low doc portfolio, was 5.24%. The new rate, effective today, is 4.99%.
Banks are competing madly to keep up with each other for fixed rate custom this year. These two banks are following on from parent bank Westpac, which announced further cuts to its two and three year fixed rate on 25 February.
Westpac now offers packaged fixed rates of 4.84% for two years and 5.09% for three years. This represents a cut of 0.05% and 0.04% respectively on the previous rates.
Westpac mortgage broker distribution general manager Tony MacRae said the cuts showed the bank’s dedication to the broker channel.
January and February saw all the majors plus NAB
, Advantedge and Teachers Mutual Bank slash their two and three year rates.
Recent statistics have shown consumer demand for fixed rates is at its highest level in close to six years, with over a third of new home loans recorded in the month of December being at fixed rates.
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