Bank cuts two year fixed rate, again

by Calida Smylie10 Mar 2014
Suncorp Bank is reducing the interest rate on its two year fixed rate home loan from Wednesday.

On its Home Package Plus loan, two year fixed interest rates with LVR of 90% or less (including LMI) will be dropped 0.05% to 4.80% per annum, while the standalone rate will drop to 4.95% per annum.

Its two year rate with LVR of more than 90% will be 5.10% per annum, also down 0.05%. The standalone rate will be 5.10% per annum.

The comparison rate is 5.72% per annum and 5.78% per annum respectively.

Suncorp made cuts to the same loan package at the start of February on fixed rate lending of 80% LVR and below.

ANZ Bank also cut its two year fixed rate by 0.05% on Friday, with its new carded rate now 4.99% per annum (comparison rate 5.77%), and on its Breakfree package 4.84% (comparison rate 5.33%).

Fixed rates accounted for 26.08% of all loans written across the country in February – although their popularity is waning since a historical high mid-last year.

 There has been a drop of 17% since the fixed rate peak in May last year, when the number of fixed loans financed reached a five-year high of 10,631.

Variable rates accounted for 73.92% of all home loans written in February – up from 72.57% the month before, according to broking franchise Mortgage Choice.