THE war for your mortgage is intensifying, with a major lender dropping its advertised variable home-loan rate to just 4.65 per cent.
Suncorp Bank will today drop several of its home loan rates to their lowest levels in years and well below rates offered publicly by the big four banks. This includes reducing their advertised variable rate loan by 76 basis points to 4.65 per cent.
They have also shaved their three-year fixed rate loan by 29 basis points to 4.84 per cent. Figures by comparison site RateCity shows the lowest advertised rates by the big four banks on variable rate home loans range between 5.18 per cent and 5.33 per cent, although many will discount these rates in private negotiations with customers or brokers.
Few borrowers would be enjoying rates as low as 4.65 per cent. RateCity CEO Alex Parsons said mortgage customers had never experienced such low rates and he expects them to fall even further. “They are amazingly low at the moment and the lowest they have ever been,’’ he said.
“There’s probably a few more falls to go. “In the absence of the cash rate moving and also coming into the winter cycle of the housing market I think we are going to see banks pushing the edges and becoming even more competitive in the next few months.”
The Reserve Bank of Australia kept the cash rate on hold at 2.5 per cent this month and it has not moved since August. Suncorp’s executive general manager of customer development David Carter said the decision to reduce its mortgage rates would help Australians save significant amounts on their mortgages.
RateCity data shows the average variable rate is 5.15 per cent compared to 5.46 per cent at the same time last year. The average three-year fixed rate is 5.09 per cent compared to 5.19 per cent 12 months ago.
Originally published as Borrowers to benefit as rates drop