Suncorp 'unbeatable' rate matches Citi

by 17 Nov 2011

Suncorp has claimed it has an "unbeatable" fixed rate suite as lenders continue trying to one-up each other in the fixed rate discounting war.

The bank announced it will drop its two-year fixed rate to 5.98%, 1bp below Bankwest's current offering. It has also cut its three-year rate to 5.99%, and its one-year rate to 6.15%. Suncorp's new three-year rate matches that of Citi, which cut its three-year rate to 5.99% earlier this week.

ING Direct head of broker distribution last week predicted that fixed rate competition between lenders could see rates fall below 6%.

“We’re very close, and in terms of driving competition and driving activity in a slow credit growth environment, lenders are looking at how they can price attractively and sensibly, in the shorter term more so than in the longer term. Just from a customer psychology perspective, five-point-something – even if it’s 5.99%, compared to six-point-something is a very nice number,” he said.

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