Suncorp Bank and Bank of Melbourne cut fixed rates

It has also cut its standalone five-year fixed rates from 5.80 per cent to 5.14 per cent.

Both changes apply to loans with a maximum LVR of 90 per cent and took effect on July 29.

“And given we apply the ‘rate of the day’ at settlement to new and additional lending, this means if you have any five-year fixed rate deals in the pipeline, we will pass on the benefits,” Suncorp said.

Meanwhile, Bank of Melbourne has cut its four-year and five-year rates to 4.99 per cent, while its three-year fixed rate has fallen to 4.89 per cent.

These changes apply to the Advantage package and took effect on July 29.

“We are committed to providing outstanding value and helping Victorians take their next steps toward buying their dream home,” the bank said.

Commonwealth Bank started the latest round of rate cutting last week when it reduced its five-year rate to 4.99 per cent.

This was then matched almost immediately by Westpac and NAB, before Homeloans cut its two-year and three-year rates.

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

[Related: Fierce competition forcing banks to cut rates]