St George joins Westpac in cutting fixed rates

St George Bank has joined the fixed-rate cutting party, trimming its rates for the fifth time in three months.

The bank has cut its three-year fixed home loan rate by 0.15 to 6.39% per annum as well as trimming its two-year fixed home loan rate by 0.05% to 6.39% for its Advantage Package customers. 

It follows parent bank Westpac cutting its fixed rates earlier this week. The Greater Building Society also cut its rates earlier this week.

St George Bank chief executive Rob Chapman says today’s decrease means the bank has cut its three-year fixed home loan rate by 0.9% per annum since it began cutting fixed rates in July this year. 

The Advantage Package includes a home loan, credit card, and transaction account. 

Chapman says a fixed rate mortgage offers “the reassurance of repayments locked in for a fixed period” 

According to RateCity’s Damian Smith cashed-up banks will continue to cut fixed rates in an effort to stimulate first home buyer interest and lock borrowers in for longer periods of time.