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Lenders battle over fixed rates

by Staff Reporter11 minute read
The Adviser

Jessica Darnbrough

Competition amongst the banks is heating up in the fixed rate arena with ANZ the latest to announce changes to its two year fixed loans.

Last week, ANZ became the third lender in as many days to slash its rates, cutting its two year fixed rate by 5 basis points, taking it to just 7.19 per cent.

Days earlier, both ING DIRECT and Westpac cut the interest on their respective fixed rate mortgages.


ING DIRECT cut 14 basis points from its three year fixed rate, taking it to 7.30 per cent.

ING DIRECT’s executive director of mortgages Lisa Claes told The Adviser the rate cut was just one of the many product enhancements the bank was currently making in order to provide a better suite of products for its broker partners.

“The enhancements we have been making at ING DIRECT seem to be having a positive influence on competition, and ultimately, it is having a positive effect on what is available to Australian home loan customers,” Ms Claes said.

Ms Claes sentiments were largely echoed by Westpac’s general manager broker distribution Huw Bough, who told The Adviser that to compete for market share, the major need to have a competitively priced suite of products.

“We are continually seeking feedback from our broker partners, asking them what product or policy areas could be improved. We are actively listening to their feedback and working off this advice. We want to increase the flow of business we receive from the broker channel and there are levers we can pull to make sure this happens.”

Westpac cut the interest on its two, three, four, five and 10 year home and investment property fixed loans.

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