St George cuts fixed rates, with three-year fixed at 5.29%

St George has cut its fixed home loan rates by between 10 and 15 basis points.

For those who take out an advantage package loan, the bank cut its one-year fixed rate to 5.15% per annum, its three-year fixed-rate to 5.29%, four-year fixed rate to 5.64% and five-year fixed rate to 5.69%.

The new rates are available for a limited time for new and existing customers.

Customers with fixed rate applications underway that have not yet settled, are also eligible for these new lower interest rates.

It has also cut its fixed rates for non-package customers with a one-year fixed rate to 5.30% pa, its three-year fixed-rate to 5.44%, four-year fixed rate to 5.79% and five-year fixed rate to 5.84%.

“Fixed loans are a popular option, as they provide customers with the security of having a set loan repayment each month. This is a good way for customers to manage their household finances more effectively and St George’s current fixed rate offer for 1, 3, 4 and 5 years puts us in a leading position against the four major banks,” says Andy Fell, general manager at St George Retail Banking.

In addition, anyone who applies for a St George home loan receives a free Australian Property Monitors (APM) property profile report for the property they are interested in buying and its location. 

St George also offers conditional loan pre-approval that is valid for six months, as well as a 5% deposit requirement.

Also announcing a cut today was Westpac, with its packaged two-year fixed-rate mortgage now at 4.99%.

Since the RBA left the cash rate steady on Tuesday several lenders, including most of the major banks, have trimmed up to 40 basis points off certain fixed rate products, says leading mortgage broker Loan Market.

Loan Market corporate spokesperson Paul Smith says the latest shift in fixed interest rates indicates lenders are all anticipating further rate cuts this year.

“We haven’t seen fixed rate this low in several years and the spread between them and variable remains in the unique position where variable are nearly a full per cent higher,” Smith says.

Smith says that although the RBA cash rate is at 3% the chances of it falling more than a full percentage point in the year next were slim, considering the RBA’s conservative response to the soft areas of the economy over the past year.

“Fixed-rate products are currently priced at a level that variable rates may not reach for several months; even with the help of RBA rate cuts."

Smith says all borrowers had varying considerations and that one’s personal circumstances, aversion for risk and financial goals were the key fundamental to bear in mind when looking at fixed interest rates.

“Fixed-rate borrowers should have the mindset to accept that variable rates could fall to a place lower than their fixed rates.”

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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