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

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.

 

PROMOTED CONTENT


Money markets drive down fixed rates
mortgagebusiness

Latest News

The proposed acquisition of Westpac PNG and Westpac Fiji by Kina will no longer proceed, it has been confirmed. ...

The listed bank has kicked off a strategic review of its company, after reportedly receiving interest from external parties. ...

Developers have called the government to act against a decline in apartment construction in NSW, saying it could threaten housing affordabi...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

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