One non-major has further undercut the big banks by reducing its fixed rates for the second time in less than a month.
P&N Bank has cut its two-year rate from 4.75 per cent to 4.69 per cent, after previously cutting nine basis points in mid-April.
The lender has also cut its three-year fixed rate from 4.99 per cent to 4.85 per cent.
P&N is a WA-based, member-owned bank and is on the lending panel of about 90 per cent of brokerages represented in Western Australia, according to Tony Versace, interim senior manager of distribution.
“We’ve again seen some improvement in funding conditions over the past few weeks and, staying true to our member-first philosophy, wanted to pass on these benefits to both existing and new members as soon as practical,” he told The Adviser.
“It helps both WA brokers and their customers by providing a real alternative to the major lenders in terms of both fixed and variable rate options and competitiveness, combined with a personalised and local service proposition.”
Several lenders told The Adviser last week that fierce competition was driving down interest rates.