SWS Bank introduces three-year fix with sub-5% rate
Six lenders reduced their fixed mortgage rates this week, signalling growing momentum in the fixed rate market, particularly for three-year terms.
The latest RateCity interest rates weekly wrap-up showed several lenders making significant moves, led by SWS Bank introducing a special three-year fixed rate of 4.99% – marking the first advertised rate under 5% since July 2023.
Loans.com.au reduced its three-year fixed rate by 0.55 percentage points, bringing it down to 5.69% for owner-occupiers paying principal and interest. Bank of Queensland also lowered its three-year fixed rate to 5.69%, although these rates remain above the market’s new low.
Queensland Country Bank also trimmed its three-year fixed rate but raised its one-year investment rates by 0.1 and 0.2 percentage points, suggesting that broader rate cuts may not be imminent.
Abal Bank continues to offer the lowest variable rate at 5.75%. Other lenders, such as Police Bank, Bank of Heritage Isle, and Border Bank, advertise slightly higher rates at 5.84%, with Pacific Mortgage Group, The Mutual Bank, and Police Credit Union each offering the same rate at 5.89%.
For fixed rates, SWS Bank leads with a three-year fixed loan at 4.99%, the lowest in the market. Other notable offers include a one-year fixed rate of 5.50% from Geelong Bank, and a two-year rate of 5.59% from Macquarie Bank. On the longer end, HSBC offers a four-year rate of 5.59%, while RACQ provides a five-year fixed rate at 5.59%. 
The lowest advertised variable rates among the big four range from 6.14% to 6.79%. CBA and ANZ are both offering variable rates for refinancers only, with CBA’s lowest at 6.15%, while ANZ’s sits at 6.14%. Westpac’s and NAB’s are slightly higher, with their lowest advertised variable rates at 6.44% and 6.79%, respectively.
In the fixed rate category, the one-year fixes show some variation, with Westpac leading at 6.09%, followed by CBA at 6.39%. NAB and ANZ are both offering 6.69% for this term. For three-year fixed rates, CBA and Westpac are advertising the lowest rates at 5.89%, while NAB offers 5.99% and ANZ trails at 6.59%. 
“All eyes will be on the RBA next week when it hands down the sixth cash rate decision for 2024,” said Laine Gordon (pictured above), money editor at RateCity.com.au. “Governor Bullock took over as head of the RBA on September 18 last year. However, it’s unlikely the board will be celebrating the milestone with a rate cut anytime soon.”
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