Adelaide Bank has adjusted its suite of fixed rates downward in a move the second tier's head of broking said will appeal to brokers at a time when fixed rates are attractive to their clients.
Adelaide Bank has reduced its 1-year, 2-year and 3-year fixed rate loans to 5.99%, a cut of 19 basis points, 18 basis points and 35 basis points respectively.
In addition, the bank has reduced its 4-year fixed rate to 6.54%, and its 5-year rate to 6.59%, a reduction of 15 basis points and 30 basis points respectively.
Adelaide Bank's head of mortgage broking Scott Erickson said the important thing about the current pricing was that its loans come with a 100% offset, which could significantly reduce the headline rate.
"If you've got a $5000 balance in your offset account, the reduction can be quite significant below the actual rate," Erickson said.
The 5-year fixed rate is the lowest the bank has offered since 2009, and Erickson said that its loan processing centre was geared up to take any resultant increase in volume.
Erickson said brokers would appreciate the offer the 100% offset gave to their clients on the back of the rate reductions.
"We do write a lot of business when we have a competitive fixed rate, because the offset brings the loan down to among the cheapest on the market - brokers appreciate that, there's no doubt about it," he said.
Erickson said the market was definitely seeing a move towards increased borrower interest in fixed rates, as borrowers try and counter the uncertainty in the world economy.
The fixed rate pricing changes will apply from next Wednesday, 23 May.