Fixed loans see further decreases in rate
With the Greater Building Society cutting their rate to 5.04% for a three year fixed loan, and Westpac cutting their three year fixed rate offering to 5.14% effective today, it appears that competition is still heating up.
Westpac's cut is 0.05% on their current three year fixed interest rate, said Gai McGrath, general manager of Westpac Retail Banking.
“Westpac understands that the dream of many Australians is to own their home sooner, and we’re pleased to be able to offer a competitive three year fixed rate for home owners who are looking for security and peace of mind about their loans and monthly repayments,” said McGrath.
Greater Building Society have cut their three, four and five year fixed home loan rates by 10, 15 and 10 basis points respectively.
CEO Don Magin said that fixed rates are continuing to be popular, with a third of their loans generated over the past six months being fixed rates.
He said that consumers should check the loan features, and especially the rate the loan reverts back to at the end of the fixed rate period.
“With some other financial institutions you are placed on a higher variable rate once your fixed term ends, a practice we have termed the ;revert rate rort'," Magin said.
“With a home loan from the Greater Building Society you always revert to the lowest variable rate of the equivalent loan,” he said.