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Discounting continues as two more lenders drop rates

by Staff reporter10 minute read
The Adviser

Fixed rates have fallen below four per cent at one bank, while another lender has unveiled its own record-low rates.

Bank of Queensland has temporarily reduced its three-year fixed home loan from 4.29 per cent to 3.99 per cent.

This includes a 1.14 per cent discount on the standard variable rate when the loan rolls over at expiry.

Bank of Queensland has also reduced its three-year fixed package home loan from 4.29 per cent to 3.99 per cent.


However, these loans will roll over to the standard applicable package discount rate at expiry.

The bank has also temporarily reduced its Clear Path home loan from 4.62 per cent to 4.45 per cent.

To receive the discounts, applications must be received by 31 May and settled by 30 June.

Head of third-party distribution Brad Rockwell said the bank has paid close attention to broker feedback since re-entering the third-party channel in 2013.

“Some of the feedback we received was around our higher comparison rates because of the standard roll-over rates at the expiry of loans,” he said.

“This was valuable input and we’ve responded with an offer that includes a competitive comparison rate.

“We want to give customers and their brokers the confidence of knowing the price is sharp and staying sharp.”

Meanwhile, Aussie Home Loans has reduced its Aussie Select and Aussie Optimizer fixed rates to record lows.

The Aussie Select basic two-year rate has fallen from 4.69 per cent to 4.39 per cent, while the basic three-year rate has fallen from 4.54 per cent to 4.49 per cent.

The other Aussie Select fixed rates are unchanged, with one year costing 4.59 per cent, four years costing 4.69 per cent and five years costing 4.59 per cent.

Aussie has also made cuts to its full suite of Optimizer mortgages, with the one-year, two-year and three-year rates all falling from 4.59 per cent to 4.39 per cent.

Both the four-year and five-year Optimizer rates have fallen from 4.69 per cent to 4.59 per cent.

These Aussie rate cuts apply to mortgages between $100,000 and $5 million with a maximum LVR of 95 per cent or less, including LMI.

Executive chairman John Symond said the mortgage market is incredibly competitive at the moment, especially for fixed rates.

[Related: Bank of Queensland gains another 746 brokers]

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