Record low fixed rates - Who is offering them?

ME Bank has dropped its three year fixed standard interest rate to the lowest offered since they became a bank in 2001.

The  0.10% cut brings the new three year fixed rate to 4.59%. The comparison rate sits at 5.18% per annum. They note that many of the majors’ fixed rates for this period of time start at 4.94%. 

Earlier this month the Commonwealth Bank cut their three year fixed rate to 4.94%.

They had also cut their five-year fixed rate to a record low for CBA, at 4.99%, which was soon after matched by Westpac and NAB.

The five year cut for CBA was a 70 basis point adjustment since July 23.

In July, ME Bank's five-year fixed standard home loan was cut to 4.94%, with previous cuts to the three-year product were made in March and April.

ME Bank CEO Jamie McPhee said that we’re either close to or at the bottom of the interest rate cycle.

“The next Reserve Bank rate change is likely to be an increase of 25 basis points in the first half of 2015,” he said.

“Customers will be able to save on their home loan in the long-term by locking in a lower rate.”

Earlier in August, Property Observer recorded that 71 lenders had cut their five-year fixed loans, even while the RBA's official cash rate has remained stable for 12 months.

The question remains now, with the RBA's next movement expected to be an increase: Just how low will the lenders go?