With the Reserve Bank of Australia (RBA) expected to cut the interest rate on Tuesday, more lenders this week have made rate cuts to some of the mortgages on offer.
Lenders such as Greater Bank, NAB, BOQ and ING have slashed some of the rates they’re offering to borrowers.
Greater Bank will lower its one-year fixed home loan rates to an exceptionally low 2.99% for owner occupiers on Monday, a day out from Tuesday’s RBA board meeting where the board is expected to slash interest rates for the first time since August 2016.
This makes Greater Bank the first lender to offer an advertised home loan interest rate below 3%.
The low rate applies to new customers of Greater Bank’s Discounted Great Rate and Discounted Ultimate Packaged Loan.
But borrowers should keep in mind the rate will only last for 12 months, before reverting to 4.55% for the Discounted Great Rate and 4.35% for the Discounted Ultimate Packaged Loan.
NAB has reduced its two-year standard owner-occupied P&I (principal and interest) fixed rate on its NAB Tailored Home Loan (Choice Package) by 20 basis points to 3.59%.
The big four bank has also slashed its two-year first home buyer fixed rate to 3.49%.
ING dropped a number of its owner-occupied home loan rates by 17 basis points.
Coming into effect yesterday, ING will now offer customers of the Orange Advantage loan a rate of 3.64% and a rate of 3.59% for its Mortgage Simplifier P&I on loans of over $1 million (maximum LVR of 80%).
BOQ group has also announced a number of fixed-rate cuts, effective from today.
Two-year owner-occupied P&I fixed rates have been slashed to 3.44%, following a decrease of 15 basis points. Three-year owner-occupied P&I fixed rates were cut 30 basis points to 3.39%.
BOQ have also cut their two and three-year investment P&I and interest-only rates by up to 30 basis points. BOQ investment home loan rates now begin at just 3.69%.
Bankwest bucks trend, hikes rates
Bankwest has bucked the rate-cutting trend by hiking up its three-year owner-occupied P&I fixed package rate by 16 basis points to 3.64%, effective from today.
The Commonwealth Bank-owned lender had earlier this month cut the rate to 3.48%, but it appears to have reversed this.
A Bankwest spokesperson said the decision was “taken in response to changing market conditions.”