Mortgage lenders continued to cut fixed rates in March, with one lender cutting a long-term rate by close to 90 basis points.
Adelaide Bank, AMP Bank, NAB, Qudos Bank and Suncorp were among those that reduced their fixed rates last month.
The Mozo Banking Roundup reports that AMP Bank cut its owner occupier five-year rate by 87 bps to 4.06 per cent, and its three-year rate by 13 bps to 3.99 percent.
Suncorp cut its five-year rate by 70 bps for investors and 20 bps for owner occupiers. Both rates are now 3.99 per cent (for packaged loans).
Adelaide Bank cut between five and 41 bps from a range of fixed terms. The biggest cut was for the five-year term, which is now 4.29 per cent.
NAB cut between five and 34 bps from its fixed terms. Again, the big cuts were at the long end.
The trend looks like continuing this month. Last week,, Canstar issued a note saying Macquarie Bank was cutting fixed rates by up to 60 bps. Macquarie’s three-year P&I rate has been cut 20 bps to 3.79 per cent. Investors fixing their rate for five years get a 60 bps cut.
Canstar finance expert Steve Mickenbecker said: “Macquarie Bank is cutting fixed rates for the second time in a month. With the bank bill swap rate falling from its high in September last year, Macquarie is joining the growing legion passing the improvement in margin to new borrowers.”
Despite all this cutting, the cheapest fixed rates are largely unchanged from the previous month. Greater Bank and Suncorp are offering 3.49 per cent for one year and Mortgage House is offering 3.57 per cent for two years.
The lowest three-year rate has come down from 3.74 per cent to 3.69 per cent. It is available from SCU and Reduce Home Loans.
Greater Bank has the lowest four and five-year rates – both 3.74 per cent and both unchanged from the previous month.