Long term fixed rates crept up for June home borrowers: Mozo

St.George Bank Group has introduced a new competitive rate of 4.19% p.a. for its Basic Home Loan across St George , Bank of Melbourne and Bank SA.

The promotional rate, effective from 1 July 2015, is available to new owner occupier Basic Home Loan applications and for existing customers switching into a new fixed rate.

Mozo reported no rate changes by the major banks in the home loan arena, but there were some more variable RBA rate cuts over June, as a result of the RBA cutting the official cash rate to 2% in May.

"The lowest variable rate of 3.94% is available from Homestar (owner occupier refinancing with LVR up to 70%) and Mortgage House (owner occupier with LVR up to 50%). 3.98% is the next best, available from both Homestar (up to 95% LVR) and Freedomlend (up to 80% LVR)," Mozo advised this week.

"Over June we started to see longer term fixed rates creep up, with 10 lenders increasing rates for terms of three years or longer. 

"We expect this trend will continue, however many long term rates haven’t moved yet and there’s plenty of competition for 1 and 2 year rates," the Mozo rate chasers blog noted.