First Aussie bank smashes through 3%

The first lender in Australia to announce a retail home loan rate under three per cent is Greater Bank. The Newcastle based mutual bank has slashed its one-year fixed (P&I) rate for owner-occupiers by a massive 0.50 percentage points to just 2.99 per cent (Comparison rate 4.42 per cent).

Greater has also trimmed two-year, four-year and five-year fixed home loan rates.

“These are the lowest fixed term rates I have seen,” said Greater Bank CEO Scott Morgan. “This will ensure we remain very competitive.”

Mr Morgan said the new rates represent a “perfect opportunity” for borrowers to consider fixing their home loan rate.

“As a customer-owned bank, we don’t have shareholders,” said Mr Morgan.

“This is why we are in a position to offer the most affordable one-year fixed rate home loan in the market.”

The new rates are effective from Monday the 3rd of June 2019.

*The comparison rates are based on a loan amount of $150,000 and a term of 25 years. WARNING: These comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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