Mortgage interest rates continued to fall in August, even though there here has been no changes to the cash rate since the beginning of July. Comparison sites are reporting that the action is in fixed rates.
Canstar reports that there were 686 cuts to variable and fixed rates by 48 lenders in August, and only five increases. The average rate reduction on owner occupier variable rates was 35 basis points. The average fixed rate reduction was 38 basis points.
The latest move was by ME Bank, which announced on Thursday cuts to variable and fixed rates of as much as 30 bps. The bank is cutting rates for investors and owner occupiers.
Mozo reports that leading rates for all fixed terms now start under 3 per cent. The lowest one-year rate is 2.79 per cent, which is being offered by Greater Bank.
Well Home Loans is offering the lowest two-year rate, at 2.74 per cent, and the lowest three-year rate, also at 2.74 per cent.
A number of lenders are offering 2.99 per cent for four years. They include BankSA, Bank of Melbourne, Greater Bank and St George Bank.
The best five-year rate – 2.99 per cent – is being offered by Citibank, Greater Bank, BankSA, Bank of Melbourne and St George.
RateCity says the average three-year fixed rate for owner occupier on its database is 3.5 per cent.
RateCity research director Sally Tindall said there were 30 lenders offering fixed rates under 3 per cent and she expects more will follow as the expectations of another rate cut increase.
The RateCity data base has a three-ear rate of 2.77 per cent, being offered by Kogan Money.
Mozo reports that the lowest variable rate is Reduce Home Loans’ offer of 2.79 per cent.
Among the big banks, ANZ’s package variable rate is 4.03 per cent, Commonwealth Bank’s is 4.23 per cent, NAB’s is 4.02 per cent and Westpac’s is 3.64 per cent.