Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Money markets drive down fixed rates

Low credit growth and record-low swap rates are creating a perfect fixed-rate mortgage environment, according to one regional bank.

Record-low rates are likely being driven by money markets, which are already pricing in two more RBA rate cuts by the end of the year, ME Bank head of home loans Patrick Nolan said.

“Even though the RBA didn’t cut in April, customers can still get their rate cuts today – through a fixed loan,” Mr Nolan said.

“With competition hotting up, many banks will pass these fixed rate savings directly on to customers,” he said.

“Banks are fighting over a smaller slice of the lending pie which is helping to push fixed rates to never before seen lows.”

Advertisement
Advertisement

PROMOTED FEATURES


ME Bank yesterday cut its three-year fixed rate to 3.99 per cent.

The bank has also introduced greater flexibility in its fixed loans to increase appeal.

“We now let new customers pay an extra $30,000 over their fixed term – which is an average of over $830 a month in extra repayments on a 3-year fixed term,” Mr Nolan said.

“Banks are working harder than ever before to win new customers,” he added.

 

Money markets drive down fixed rates
mortgagebusiness

Latest News

For the second month in a row, the number of borrowers exiting repayment deferrals has outpaced those requesting them, according to APRA dat...

A rise in demand for detached housing in August – potentially driven by HomeBuilder – countered a sharp drop in the number of apartments...

While still expecting a change in the official cash rate, the major bank’s senior economist has backtracked from his view that this would ...

FROM THE WEB
podcast

LATEST PODCAST: Responsibilities and responsible lending

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.