A non-major bank yesterday announced reductions across a range of its home loans, matching its 2-year fixed rate to the lowest in the market at 2.09%.
As of 1 June 2020, HSBC and ING boast the equal lowest rate currently available.
“Through their sharp pricing, HSBC and ING are again confirming their appetite for home lending in the Australian market, having lifted share by 0.20% and 0.08% respectively over the past 12 months,” said Canstar group executive of financial services, Steve Mickenbecker.
In the 12 months to April 2020, HSBC also saw a 24% increase in the value of its owner occupier loan book.
“We’ll see what [this afternoon] brings from the Reserve Bank, but one thing we can be sure of is the robust competition for home lending,” said Mickenbecker.
“Fixed rates have become the competitive instrument of choice by the banks as they jostle for their share of quality business."
Over the month of May, 2-year fixed rates were cut by an average of -0.39% across Australian lenders.
Canstar data shows the gap between the average variable rate of 3.47% and the lowest 2-year fixed rate of 2.09% has blown out to 1.38%, “a compelling refinancing argument for Australian home borrowers”, according to Mickenbecker.
HSBC also yesterday reduced its Premier Standard Variable Rate by -0.05% and its 3-year fixed rates by -0.06%.