CUA and ING DIRECT slash fixed rates

Fixed mortgage rate cutting went into overdrive yesterday, with announcements by St George Bank, ING Direct, CUA and Firstfolio.

CUA issued a press release saying its three-year fixed rate of 6.34 per cent was the leading rate. But within a couple of hours ING Direct was saying its three-year rate of 6.29 per cent was the lowest.

According to the comparison website, InfoChoice, lenders have been cutting fixed rates fairly steadily since late July, with some lenders cutting them as many as four times in that period.

The average three-year home loan rate has fallen 27 basis points over the past two months – from 7.06 per cent to 6.79 per cent. The lowest three-year fixed rate is 6.29 per cent.

Source: Banking Day