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Demonstrating that competition in the home loans market is not confined to the majors, one second-tier bank has dropped its fixed rate to below six per cent.
Suncorp Bank has announced a cut to its three-year fixed rate that takes it down to a sharply priced 5.99 per cent.
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The move means Suncorp now has one of the most competitive fixed rate products available in the market, said Steven Heavey, Suncorp Bank’s national head of intermediaries.
“With consumers looking at fixed rates now more than ever, an offer for a fixed rate under the six per cent mark should attract a fair degree of interest,” he said.
“Brokers are bound to see the benefits from the heightened interest these reductions will garner.”
Suncorp’s move to cut its fixed rates follows the decision of St George and sister companies Bank of Melbourne and Bank SA to slash interest rates for two fixed rate products earlier this week.
While Suncorp’s one-, two-, three- and five-year fixed rates all saw generous reductions, however, it was the lender’s two- and five-year fixed rates that attracted the greatest cuts, dropping by a massive 0.45 and 0.4 per cent respectively.
After receiving positive feedback on its My Home Package offer, the second-tier lender announced it will be extending its offer beyond the original November 20 deadline.
“We are starting to see signs of life in the marketplace and didn’t want to end the offer before interest picked up,” Mr Heavey said.
“We decided to extend the offer to allow for more deals to be settled this side of Christmas.”
The package, which is available until further notice, represents a 1.03 per cent pa discount on Suncorp’s standard variable interest rate for the life of the loan — when the LVR is less than or equal to 80 per cent – with no upfront establishment fee.
