Lenders continue to cut fixed rates for home loans

It appears that the floor hasn’t been seen for some home loan products, with Greater Building Society cutting their fixed rates on two, three, four and five year fixed rates for its packaged home loan, the Ultimate Home Loan, from today.

In early February, it was found that 20 lenders had made cuts since the beginning of 2014.

The Greater Building Society changes:

• Three year rates: 26 basis points, to 4.99%
  
  
• Two year rates: 20 basis points, to 4.79%
  
  
• Four year rates: 11 basis points, to 5.49%
  
  
• Five year rates: 15 basis points, to 5.64%

Greater Building Society’s CEO, Don Magin, said that those looking for a fixed rate should avoid the “revert rate rort” where customers end up on a higher, or even the highest, standard variable rate when the fixed loan term is completed.

Fees around transaction accounts, insurance costs, financial planning fees, redraw facilities and any annual fees on linked cards should be looked at.

As Property Observer previously reported, the gap between the official cash rate and home loans continues to widen.