St. George has trimmed its fixed 1, 2 and three-year home loan rates to 5.99% and sought to ratchet up interest in switching to the bank by offerning consumers a cash incentive.
The fixed rate changes, which apply to the bank's Advantage Package - including for subsidiary Victorian brand Bank of Melbourne - were effective yesterday and will apply for a 'limited time'.
St. George's chief executive George Frazis said the fixed rate offer, available to both new and existing variable rate customers, was the 'best in the market' at present.
The bank said it is also offering new customers $700 towards switching their current loan of $250,000 or more from another financial institution to St. George's Advantage Package. The $700 incentive will apply for new home loan applications received by 31 May and settled by 15 July.
Meanwhile, Bank of Melbourne is offering discounts of up to 0.9% off new Standard Variable Rate Home Loans and new Portfolio Loans for total borrowings over $500,000 under the Advantage Package. Lower discounts of up to .85% p.a. are also available between $250,000 and $500,000.