Greater Bank goes below 3 per cent: RateCity

Greater Bank has announced it will slash its 1-year fixed home loan for owner-occupiers paying principal and interest by 0.50 per cent to 2.99 per cent.

The cut makes it the first bank to go below 3 per cent ahead of the RBA’s meeting on Tuesday.

Greater Bank is dropping several fixed rates, including its 2-year fixed rate to 3.39 per cent, and both the 4- and 5-year fixed rates to 3.64 per cent, which will be the lowest available rates on RateCity for all three loan terms.    

The rate cuts take effect on Monday 3 June. 

Bank of Queensland will also cut its 2-year year fixed rate to 3.44 per cent, and 3-year fixed home loan rate to 3.39 per cent for owner-occupiers, effective tomorrow. 

Today’s updates from Greater Bank and Bank of Queensland follows ING’s and NAB’s announcements made in the past 24 hours, as fixed rate cuts continue to flow in thick and fast. 

St George and Bank of Melbourne have announced cuts to fixed rates.

Canstar’s finance expert, Steve Mickenbecker noted interest rates for interest only loans to owner occupiers lead the market across all terms.

“Fixed rate cuts are becoming frenzied, with falling wholesale funding costs and the overwhelming expectation of RBA rate cuts.

"Lenders are well ahead of the RBA curve.

“Who would have thought a rate starting with a 2 was possible? Certainly nobody born before 1970 who lived through ‘the recession we had to have’ and rates approaching 20%.

"Nor did most commentators two years ago, who were expecting rates to be on the way up by now," he said.