One Australian lender has just announced a three-year fixed rate home loan under 4 per cent.
From today, Newcastle Permanent Building Society is offering its three-year standard fixed interest rate at 3.99 per cent per annum – a 20 basis point reduction of the existing rate.
Acting CEO Andrew Yost said the rate may be the lowest three-year fixed rate home loan – the most popular fixed-rate period for borrowers – since fixed home loan rates have been available in Australia.
“We believe that this may be the lowest three-year fixed-rate home loan ever offered by a major Australian banking institution,” Mr Yost said.
“Given the three-year fixed term is the most popular among people who prefer the certainty offered by fixed rates, this is a major win for home loan customers, and once again we’re confident the major banks will find Newcastle Permanent tough to beat,” he said.
He added that a fixed interest rate of 3.99 per cent for three years has been unheard of in Australia.
“Given the historically low official cash rate, we’re proud to lead the retail banking industry to set historically low rates of our own,” Mr Yost said.