Two lenders have responded to the “considerable borrower appetite to lock in their rates” by cutting their fixed interest rates.
Adelaide Bank and Homeloans have reduced their three-year and four-year fixed rates by up to 20 basis points.
Adelaide Bank cut its Smartfix three-year rate from 5.19 per cent to 5.09 per cent and its Smartfix four-year rate from 5.59 per cent to 5.39 per cent.
The lender also cut its SmartDoc three-year rate from 6.19 per cent to 6.09 per cent and its SmartDoc four-year rate from 6.59 per cent to 6.39 per cent.
General manager Damian Percy said Adelaide Bank was aware of the “considerable borrower appetite to lock in their rates at the moment” given that the official cash rate is at a record low.
“We are committed to doing our best to lower the cost of lending and have a compelling proposition to help customers to do just that,” he told The Adviser.
“Economists have been forecasting that the Reserve Bank may exercise the option to increase the official cash rate next year, so we have acted while we can to pass on this opportunity to our customers.”
Meanwhile, Homeloans cut its three-year MoniPower rate by 10 basis points to 5.29 per cent and its four-year MoniPower rate by 20 basis points to 5.59 per cent.
The low-doc three-year MoniPower rate has fallen by 10 basis points to 6.39 per cent and the low-doc four-year MoniPower has been cut by 20 basis points to 6.69 per cent.