Despite the Reserve Bank's cash rate cut earlier this month, fixed rates are still proving very enticing, with yet another lender slashing the interest rate on its suite of fixed rate products.
Yesterday, Advantedge cut the interest on its one-, two-, three-, four- and five-year fixed rate products.
Advantedge will now offer a one-year fixed rate of just 4.64 per cent – a reduction of 15 basis points.
In addition, the lender will offer a two-year fixed rate of 4.69 per cent, a three-year rate of 4.84 per cent, a four-year rate of 5.16 per cent and a five-year rate of 5.22 per cent.
Advantedge’s general manager of distribution, Brett Halliwell, said the rate reductions reflect Advantedge’s commitment to providing brokers with one of the most competitive and market leading offers.
“The home brand products under the FAST, Choice and PLAN aggregation platforms have once again cemented their leadership position by offering some of the most competitive standard fixed rates across all ... fixed rate terms,” Mr Halliwell said.
“It has been a long time since three out of five fixed rate terms have started with a four. We have seen a lot of movement in fixed rates over the past few months and our decision to go even lower demonstrates that we understand the market is changing and evolving. As a result we will continue to provide brokers with the support they need.
“We are focused and committed to helping our brokers grow their businesses. The reductions we’ve made to our fixed loan rates provide brokers across FAST, PLAN and Choice the flexibility and freedom to offer their customers some of the most competitive products in the market.”
Taking a step back and examining the historical context of the past 20 years, Mr Halliwell said it is a great time for consumers who are looking to borrow, buy or invest in property.
Variable rates are at record lows and if consumers are looking for certainty there are very competitive fixed rates on offer, he said.
“NAB economists expect this low rate environment to continue for the near future, even predicting a further 0.25 per cent rate cut later in 2013. Given the current environment there is clearly going to be increased market competition when it comes to fixed rate offers – which is good news for consumers. To remain a viable player, lenders will need to offer a compelling product and service proposition while remaining price-competitive,” Mr Halliwell said.