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Jessica Darnbrough
In a bid to compete for market share, Australia’s majors, second tiers and non-bank lenders continue to slash the interest on their respective fixed rate products.
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St George slashed up to 55 basis points off its suite of fixed rate products.
Effective from today, the major now boasts a one and two year fixed rate of just 6.59 per cent, as well as a three and four year rate of just 6.99 per cent and 7.04 per cent.
The bank’s chief executive officer Rob Chapman said the 0.55 per cent rate reduction represented a “very competitive offer for customers”.
“We’re seeing continued customer interest in our fixed home loan options, which offer customers certainty about their home loan repayments for a fixed period.”
But St George wasn’t the only lender to slash rates.
Citibank cut 34 basis points from its three year fixed rate, taking it to just 6.45 per cent.
The second tier lender has slashed more than 75 basis points from its fixed rates in the last month alone.
The lender’s head of mortgages Vibha Coburn said the bank’s fixed rates were now cheaper than the variable rates, providing customers more certainty in the current turbulent economic environment.
“Our competitive rates are more than 55 basis points lower than the variable rates currently offered by Citibank. Customers with the view that variable rates could reduce even further in the short-term may still be better off locking in a lower fixed rate now,” she said.
Non-bank lenders Future Financial and Iden also cut the interest on their respective fixed rate products.
Future Financial trimmed its three year fixed rate to 6.59 per cent, while Iden now offers a three year fixed rate of 6.54 per cent.
