Westpac and NAB have responded almost immediately after Commonwealth Bank unveiled the lowest five-year fixed rate in its history.
Commonwealth Bank announced yesterday that it had cut its five-year rate from 5.69 per cent to 4.99 per cent for the bank's Mortgage Advantage Package and Wealth Package products.
Both majors decided later that day to cut their own five-year rates to 4.99 per cent.
Westpac has reduced its five-year fixed rate from 5.79 per cent to 4.99 per cent, which includes a discount of 20 basis points on the Premier Advantage Package.
This will be the lowest five-year rate in Westpac’s history when it takes effect on July 28.
Westpac’s general manager for broker distribution, Tony MacRae, said the bank was pleased to offer a strongly competitive interest rate with the security of fixed interest.
“Many customers are looking for certainty with their home loan repayments and we are committed to delivering customers that peace of mind through this significant interest rate reduction,” he said.
Meanwhile, NAB’s fixed rates have dropped to their lowest levels in more than 20 years after the bank reduced its Choice fixed rate package, effective July 25.
The five-year rate has fallen from 5.69 per cent to 4.99 per cent, the four-year rate from 5.44 per cent to 4.99 per cent and the three-year rate from 5.05 per cent to 4.94 per cent.
NAB’s group executive of personal banking, Gavin Slater, said the bank has seen an increased demand for fixed-rate home loans in the past 12 months.
“We know many home owners are looking for certainty, whether they are investors or first home buyers, and NAB is offering that through these market-leading fixed home loan rates,” he said.