Non-major lenders ME and St George have announced a raft of fixed rate home loan reductions below 4%.
Effective this week, ME has cut its three-year fixed home loan rate to 3.89% for owner occupiers and 3.99% for investors, by 8 to 10 basis points respectively.
According to the super fund-owned bank, this latest cut puts ME’s three-year fixed home loan significantly lower than the majors, whose three-year fixed rates start at 4.34%.
ME’s general manager broker, Lino Pelaccia, said ME was able to facilitate the new rate through recent cheaper fixed rate funding.
“The cost of fixed rate funding has fallen significantly since the RBA
cut rates in early May, savings that ME has decided to pass on to customers in the form of cheaper fixed rates home loans,” he said.
St George also announced interest rate cuts on both its two and three-year fixed rate home loans, effective this week.
The Westpac subsidiary has reduced its two-year fixed rate to 3.75% and its three-year fixed rate to 3.89% for owner occupiers. For investors, the lender is offering 3.99% on its two-year fixed rate loan and 4.09% on its three-year fixed rate home loan.
In addition, St George has also announced a promotional rate on its Basic Home Loan. For owner occupiers, the rate has been reduced to 4.04% whilst for investors it has been cut to 4.24%.