New cheapest fixed rate in Australia as Greater Bank dips to 1.59%

by Mike Wood21 Sep 2021

Greater Bank has slashed 10 basis points of its one and two year fixed rates, announcing a new price of 1.59%, the lowest fixed rate home loan available anywhere in Australia.

Greater Bank’s new market-leading 1.59% is a full 20 basis points ahead of their nearest competitors, with the next cheapest rate in the one-year category being 1.79%, available from UBank, RACQ, Hume Bank and Bank of Us.

Over two years, the next best is also 1.79%, which can be found at St George Bank, Bank of Melbourne and Homestar Finance.

This move further signals that lenders are not anticipating a cash rate rise in the next two years, as Reserve Bank of Australia Governor Philip Lowe has stuck to his guns on the widely-publicised 2024 date.

Greater Bank are clearly confident that that schedule will not be brought forward, fixing in a 2021 interest rate that can run to 2023 at the earliest.

While lenders are now moving to cut one and two year fixed rates, there have been near uniform rises in rates on longer term fixed rate home loans.

Variables have been slashed across the board, too, negating the rise in rates that accompanied uncertainty regarding the RBA’s position as several major banks publicly floated that they thought rates would rise before 2024.

 

READ MORE: What NAB’s fixed rate rise means for home loans in 2022