Seven and counting: more banks cut fixed rates

Citibank, AMP Bank and CUA have also announced interest rate reductions.

Citibank has matched Commonwealth Bank, Westpac and NAB with its five-year rates, which have fallen from 5.39 per cent to 4.99 per cent.

It also reduced its three-year rate from 4.87 per cent to 4.74 per cent and its two-year rate from 4.79 per cent to 4.74 per cent.

Citibank’s head of retail distribution, Vibha Coburn, said the bank’s fixed-home loans “offer excellent value to customers seeking interest rate certainty”.

AMP Bank has also dropped its fixed rates. The three-year rate has been cut from 5.09 per cent to 4.85 per cent, while the two-year rate has fallen from 4.99 per cent to 4.85 per cent.

There has also been movement on the Essential Home Loan variable rate product, which has dropped from 4.90 per cent to 4.74 per cent.

Chief operating officer Rob Slocombe said AMP’s new fixed-rate terms are “some of the most competitive in the market”.

Meanwhile, CUA has lowered its five-year fixed rate from 5.50 per cent to 5.10 per cent and its three-year rate from 4.89 per cent to 4.69 per cent.

The credit union has also made cuts to its Premium product, with the five-year rate falling from 5.70 per cent to 5.30 per cent and the three-year rate from 4.99 per cent to 4.84 per cent.

CUA said it was “responding to recent fixed-rate movements within the market to ensure we remain relevant and visible as a genuine alternative to the big four”.

The new rates from AMP took effect on July 27, followed by Citibank on July 28 and CUA on July 29.

[Related: Fierce competition forcing banks to cut rates]