HSBC makes big move, now offers lowest four-year fixed rate
More than a dozen non-major lenders have reduced their home loan rates this week in one of the most active periods for rate adjustments in recent months.
The latest RateCity interest rates weekly wrap-up has also shown HSBC making significant cuts to its fixed rate home loans, now offering the lowest four-year fixed rate at 5.59%. Macquarie previously held the lowest four-year rate at 5.79%.
St. George, Bank of Melbourne, and BankSA also lowered their fixed home loan rates, cutting 0.65 percentage points off their two-year rates, bringing them to 5.84% for borrowers with a minimum 30% deposit.
ubank reduced several of its fixed home loan rates, with its two-, three-, and five-year fixed rates now at 5.79%, subject to deposit conditions. 
As of this week, the lowest variable rate is still being offered by Abal Bank at 5.75%. Close behind are Police Bank, Bank of Heritage Isle, and Border Bank, all offering a rate of 5.84%. Pacific Mortgage Group, The Mutual Bank, and Police Credit Union round out the field with a rate of 5.89%.
For fixed rates, the lowest advertised one-year rate is from Geelong Bank at 5.50%. For two-year terms, Australian Mutual Bank offers a rate of 5.64%, while Police Credit Union leads the three-year fixed rate category at 5.49%. HSBC and RACQ are offering the lowest four- and five-year fixed rates, respectively, at 5.59%. 
Among the big four banks, the lowest advertised variable rates are 6.15% from Commonwealth Bank (CBA), 6.44% from Westpac for two years before increasing by 0.4 percentage points, 6.79% from National Australia Bank (NAB), and 6.14% from ANZ.
For fixed rate home loans, the lowest rates offered by the big four banks include Westpac’s one-year fixed rate at 6.09% and two-year fixed rate at 5.89%, and a three-year fixed rate of 5.89% from CBA, Westpac, and NAB. Westpac also offers the lowest four-year and five-year fixed rates, both at 5.89%. 
“As competition grows, lending has continued to tick up,” said Laine Gordon (pictured above), spokesperson at RateCity.com.au. “The latest APRA monthly authorised deposit-taking institution statistics showed total lending (to owner-occupiers and investors) increased by $6.77 billion or 0.31% for the month of July.
“ANZ led the big four banks in terms of percentage growth, with a 0.43% monthly increase – or $1.29 billion in dollar terms – to its loan book. NAB posted a slight dip in its home loan book in July, down $329.4 million or -0.10% in the month. However, the longer-term trend for NAB continues to be one of growth, up $9.7 billion (3.12%) year-on-year.
“Once the ANZ-Suncorp merger is finalised, ANZ is set to move into third position, up from fourth, as the big banks continue to fight for home loan market share.”
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