Competition heats up in two-year fixed market
A dozen lenders reduced at least one home loan rate last week, while only one raised rates, according to data from financial comparison site RateCity.com.au.
“Once again, the two-year fixed rate space was the ‘sweet spot’ for competition, with several lenders sharpening their rates,” said Laine Gordon (pictured above), money editor at RateCity.com.au.
Athena joined the ‘under 6%’ group, reducing its two-year fixed rate by 0.85 percentage points to 5.99%. Summerland Bank dropped its two-year fixed rate to 5.64%, though this is limited to borrowers with a 40% deposit. Bank First also made a cut, lowering its two-year fixed rate by 0.30 percentage points to 5.79%.
Bank of China made a significant reduction to its discounted variable rate, slashing it by 1.81 percentage points. This brings its owner-occupier rate down to 5.88%, one of the lowest rates currently available.
The lowest advertised variable rates in the market come from Hume Bank, starting at 5.64%, followed by Abal Bank at 5.75%, and a trio of lenders — Police Bank, Bank of Heritage Isle, and Border Bank — offering rates starting at 5.84%. Bank of China rounds out the list.
On the fixed rate side, Geelong Bank offers the lowest advertised one-year fixed rate at 5.50%, while Easy Street Financial leads the two-year fixed category with a rate of 5.49%. SWS Bank stands out with the lowest three-year fixed rate at 4.99%. For four- and five-year fixed terms, People’s Choice Credit Union and Heritage Bank both offer rates starting at 5.49%.
Among the big four banks, ANZ offers the lowest rate for variable loans at 6.14%, followed closely by Commonwealth Bank at 6.15%. NAB’s lowest variable rate stands at 6.79%, while Westpac has a variable rate of 6.44% with a two-year fixed term before an increase of 0.4 percentage points.
On the fixed rate front, Westpac stands out with the lowest rates for multiple terms. It offers 5.89% for two-, three-, four-, and five-year fixed-rate loans. ANZ matches this rate for three-year terms and slightly exceeds it for two-year loans at 5.99%. CBA and NAB follow closely, with the former’s two-year fixed rate at 6.29% and the latter offering the same rate for three-year fixed loans.
Any thoughts on the latest RateCity interest rates weekly wrap-up? Share them with us by leaving a comment in the discussion box at the bottom of the page.
