Which lenders cut fixed rates despite the RBA decision?

by Calida Smylie12 May 2014
Lenders are still cutting rates this month left, right and centre in a bid to capture more of the tight market.
On Thursday, Australian First Mortgage will reduce the three-year fixed rate on its Flexible Option product range, for both full and lo doc.
The full doc product moves a full ten basis points, from 5.19% to 5.09%, and the lo doc reduces from 6.29% to 6.19%.
From today, AFM is also dropping the two-year fixed rate on its Complete/Alliance product range and will be offering rates from 4.78%.
The RBA decided to keep interest rates on hold for this month, but AFM managing director Tanya White said the fixed rate review is part of AFM’s normal pricing activity.
“AFM is always looking for opportunities to review its interest rates outside of the RBA’s cash rate movements.
“So in spite of the RBA keeping the cash rate stable this month we have reduced our three-year fixed rates in our Flexible Option product range.”

On Friday, Wide Bay Australia introduced new two-year fixed home loan interest rates. The ‘broker only’ rate of 4.75% replaces its previous three year broker only rate of 4.89%.

P&N Bank has cut its two-year rate from 4.75 per cent to 4.69 per cent – the second time in less than a month – after cutting nine basis points around three weeks ago. The lender also cut its three-year fixed rate from 4.99% to 4.85%.
Other lenders which made cuts over the past month include AMP Bank, Bankwest, Citibank, Commonwealth Bank, CUA, Homeloans, P&N Bank, Pepper and Yellow Brick Road.
And another lender is responding to broker demand by extending its $0 application fee special. Bluestone introduced a $0 application fee plus one free valuation across all its loan products in January.

The temporary offer, which applies to all new loan applications, has now been extended until June 30.


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