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Major cuts rates, offers bonuses, adds staff

by Nick Bendel7 minute read

One major bank has responded to the “increasingly competitive market” by cutting rates and offering $1,000 switching bonuses.

ANZ cut six basis points from its three-year fixed rate, which is now 5.28 per cent, and from its Breakfree package, which has fallen to 5.13 per cent. The change took effect on February 7.

ANZ has also introduced a $600 loan applicant fee waiver for new Simplicity Plus loans and will pay a $1,000 switching bonus for loans greater than $1 million that are submitted before March 7.

The bank’s head of third party relationships, Keiran Evans, said the initiatives were designed to win greater market share.

“We’ve introduced a range of special discretions to help brokers win new customers in an increasingly competitive market,” he told The Adviser.

“[We’ve] dropped our three-year fixed interest rate and we are increasing the size of our overall sales force by a third this year to improve service levels for brokers.”

This year has already seen rate cuts from a raft of lenders, including Westpac, NAB Broker, Citibank, ING Direct, Teachers Mutual Bank, Advantedge Financial Services and Suncorp Bank.

Westpac has also raised commissions, while Commonwealth Bank has offered a $1,000 rebate for first home buyers.

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