More non-majors join fixed-rate frenzy

by Julia Corderoy29 Jul 2014
A number of non-majors have joined the fixed-rate frenzy, slashing fixed home loan rates to under 5%.

The Bank of Melbourne has announced that it will slash its three, four and five year fixed home loan rates on its Advantage Package to below 5%.

The bank's three year rate has been cut to 4.89%, while its four and five year rates have both been cut to 4.99% per annum.

“With low interest rates and many fantastic home loan deals on offer, now is a great time for Victorians to come and visit Bank of Melbourne. We are committed to providing outstanding value and helping Victorians take their next steps toward buying their dream home,” Bank of Melbourne Chief Executive Scott Tanner said.

The Bank of Melbourne’s one and two year fixed rates on its Advantage Package will remain at 4.79% per annum.

Citibank has also announced cuts to its two, three and five year fixed home loan rates. The five year rate has been reduced by 40 basis points to 4.99%, while its two and three year rates have been reduced to 4.74% per annum. 

“Our customers also appreciate our free rate lock feature on our competitively priced fixed mortgages, which guarantees their low fixed rate at the time of application for 60 days. This offers protection from rate changes before their settlement date,” Citi’s Head of Retail Distribution Vibha Coburn said. 

AMP also announced cuts to its fixed rates, with the bank claiming its three year rate is now one of the most competitive on market.

The bank trimmed 24bps from its three year fixed term rate, to bring the new rate to 4.85%. AMP also cut its two year rate by 14bps to 4.85%, and its AMP Essential Home Loan by 16bps to 4.74%.