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More lenders cut rates by 15 points

by Nick Bendel5 minute read
Rates cut

Three lenders have reduced their fixed rates, while a fourth lender has introduced new LVR tiers.

ING Direct has cut five basis points from four of its products. The two-year fixed rate is now 4.74 per cent as is the two-year fixed SmartPack with an LVR no higher than 80 per cent.

The five-year fixed rate is now 5.54 per cent as is the five-year fixed SmartPack with an LVR no higher than 80 per cent.

Homeloans has cut five points from its three-year fixed rates, 15 points from its four-year fixed rates and 10 points from its five-year fixed rates.

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The ProSmart three-year fixed rate is 5.29 per cent and the ProSmart SMSF three-year fixed rate is 5.79 per cent.

The ProSmart four-year fixed rate is 5.74 per cent and the ProSmart SMSF four-year fixed rate is 6.14 per cent.

The ProSmart five-year fixed rate is 5.99 per cent and the ProSmart SMSF five-year fixed rate is 6.39 per cent.

Mortgage manager Nationalcorp Home Loans has cut some of the fixed rates it offers through ING.

The basic three-year rate has fallen from 5.29 per cent to 5.24 per cent and the basic four-year rate has fallen from 5.74 per cent to 5.59 per cent.

The basic SMSF three-year rate has fallen from 5.59 per cent to 5.54 per cent, the basic SMSF four-year rate has fallen from 6.04 per cent to 5.89 per cent and the basic SMSF five-year rate has fallen from 6.24 per cent to 6.14 per cent.

Nationalcorp chief executive Barry Parker said Nationalcorp also offers a 95 per cent LVR product with non-genuine savings via Resimac.

Homeside has also introduced new LVR tiers on its Homeplus range.

Loans up to $250,000 are priced at 5.10 per cent when the LVR is under 80 per cent and 5.24 per cent when the LVR is 80-90 per cent.

Loans from $250,000 to $499,000 are priced at 4.95 per cent when the LVR is under 80 per cent and 5.04 per cent when the LVR is 80-90 per cent.

Loans from $500,000 to $749,000 are priced at 4.92 per cent when the LVR is under 80 per cent and 4.99 per cent when the LVR is 80-90 per cent.

Loans above $750,000 are priced at 4.89 per cent when the LVR is under 80 per cent and 4.94 per cent when the LVR is 80-90 per cent.

Homeloans’ general manager of sales, Greg Mitchell, said the downward trend in fixed interest rates is a good sign.

“A good philosophy is to review your finances and financial commitments and not just jump in to lock in rates,” he said.

“If you maintain a watching brief then you can fix wholly or in part down the track. But if you want stability, then it’s certainly something to consider.”

NAB Broker general manager Steve Kane said Homeside would continue to review its products and rates so it could remain competitive.

 

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