Fixed home loans reach new lows as Greater Bank announces 3.99%
5 year fixed rate
Tuesday 17 May 2016
Borrowers are the big winners of the RBA rate cut, as interest rates plummet across the home loan market. In one of the most recent cuts, Greater Bank has reduced rates across its fixed rate home loans by up to 0.25%, bringing its Discount Ultimate Home Loan 5 year fixed rate offer down to 3.99% (comparison rate 4.48%*) - the lowest 5 year fixed interest rate in the current market.
The rate cut comes after the RBA’s surprise decision to cut rates to an historically low 1.75% this month, which prompted a number of providers to drop interest rates on their variable rate home loan products.
The 5 year fixed 3.99% rate Discount Ultimate Home Loan offer is available to owner occupiers with an LVR up to 85%, borrowing more than $150,000. There is also a $375 fee.
Scott Morgan, CEO of Greater Bank, said that to his knowledge, the new 3.99% rate for fixed a 5 year term was one of the lowest ever offered, and marks the first time the customer-owned bank has ever had a 5 year fixed home loan rate below 4%.
“With competitors such as Greater Bank, offering fixed and variable rates under 4 per cent, there has never been a better time for Big 4 bank customers to consider switching,” Morgan said.
According to Mozo’s database, the average big 4 rate for a comparable 5 year fixed rate home loan is 4.59%. For a borrower with a $500,000 mortgage, switching to the Greater Bank’s 3.99% offer could mean saving over $10,140 during the five year fixed period.
Top five fixed rates:
We’ve rounded up today’s top fixed rate mortgage offers:
- 1 year fixed rate - Illawarra Credit Union Fixed Home Loan - 3.50% (comparison rate 4.31%*)
- 2 year fixed rate: - Newcastle Permanent Fixed Rate Home Loan - 3.74% (comparison rate 5.04%*)
- 3 year fixed rate: - Illawarra Credit Union Fixed Home Loan - 3.89% (comparison rate 4.27%*)
- 4 year fixed rate: - Greater Bank Discount Ultimate Home Loan - 3.99% (comparison rate 4.51%*)
- 5 year fixed rate: - Greater Bank Discount Ultimate Home Loan - 3.99% (comparison rate 4.50%*)
To compare the fixed rate market, head over to our home loan comparison table, and lock in a great rate for your mortgage.
*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.