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ISCOVER
Staff Reporter
Fixed interest rates have continued their downward slide in October, with 36 lenders moving rates downward.
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New data from RateCity found that almost 90 per cent of mortgage lenders have lowered some of their fixed rates since August 1, with some slashing fixed rate home loans by as much as 140 basis points in that time.
RateCity's chief executive Damian Smith said the bank battle to attract new business has ramped up with fixed rates now available under the 6 per cent mark.
"The major four banks – ANZ, Commonwealth Bank, NAB and Westpac – have all slashed their fixed rate mortgages by at least 50 basis points for spring. Of the big four, the biggest cut was made by Commonwealth Bank, which slashed its 5-year fixed rate by 85 basis points to 6.89 percent," Mr Smith said.
The average three year fixed rate – one of the most popular fixed terms available – is 6.61 per cent, with rates starting at just 6.25 per cent.
Longer-term fixed rates, such as three and five year terms, have seen the majority of cuts in recent months, said Mr Smith.
"On average, three year fixed rates have dropped by 66 basis points since the start of August, while five year rates have fallen by 68 basis points on average."
The three year fixed rate has moved 9 basis points in the first half of October alone.
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