Greater Building Society five-year fixed home loan rate drops to 5.99%

The Greater Building Society has cut its five-year fixed-rate home loans rate to 5.99% – the first time since March 2009 its rate has dropped below 6%.

The latest rate is down 16 basis points, with a comparison rate of 6.08%.

Its five-year fixed-rate ultimate (packaged) home loan is down 15 basis points to 5.95%, with a comparison rate of 6.33%.

The Greater Building Society’s David Bryde says its rates are lower than those of the major banks and the gap widens when comparison rates are used.

“Consumers should always use comparison rates when looking at home loan rates because they are a truer rate, taking into account fees and charges,” Bryde says.

 Bryde says that fixed rates suit people who demand certainty.

“With uncertain economic times and conjecture about which way rates may go fixing rates can be attractive for some customers,” he says.

“These lower fixed home loan rates are another reason why people should consider switching from their bank, and it is easier to do that than people think.”