The Commonwealth Bank said on Friday that they would reduce the fixed-rate mortgage rates for two, three and five years by 0.2-0.8%, and apply to both self-occupied and investment mortgage holders.
This month, including West Pacific, Australia and New Zealand, nationals and other small lending institutions also lowered fixed interest rates.
The biggest rate cut by the Commonwealth Bank is the investment mortgage for a five-year fixed-rate interest rate. The product cuts interest rates by 0.8% and the new interest rate is 4.19%.
The Federal Bank cut the interest rate of the two-year interest rate from the fixed-rate home loan to 0.61% to 3.18%, and the three-year interest rate fell to 3.28%.
Australia and New Zealand also announced on Thursday that interest rate cuts on fixed-rate mortgage products ranged from 0.25% to 0.96%.
The one-year interest rate of the Australian and New fixed interest rates is 0.81% to 3.28%, and the fixed interest rate is 0.96% to 3.53%.
RateCity’s research director Sally Tindall said that the Federal Bank’s interest rate cuts may lead to more interest rate cuts by competitors, while the interest rates of fixed-rate products for the two major banks for two and three years are already lower than those for variable-rate products. Nearly 50 borrowers on the price comparison website lowered their fixed interest rates this month, and the lowest interest rate in their database was 2.79% from the Greater Bank.
ANZ and the Commonwealth Bank offer the lowest interest rates for those who accept the “package” plan, which includes daily trading accounts and credit cards.
These changes are only for new customers, which were made on the premise of lowering the interest rate this month and the central bank said it would consider further interest rate cuts.
The market believes that the central bank will cut interest rates to 0.75% by November, and some economists believe that it will fall to 0.5% next year, because the central bank can’t let inflation reach their target range of 2-3%.
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