Sapphire cuts fixed rate below 6.5%

Competition continues to intensify in the fixed-rate home loan market with non-bank lender Sapphire cutting its rates for loans between two and five years. Sapphire's three-year rate drops from 6.79 to 6.49 per cent, the lowest in the market currently.

Fixed rates have been falling as financial markets begin to believe that global interest rates aren't going to rise as fast as had earlier been anticipated. ANZ cut its rate recently to 6.55 and NAB to 6.57 per cent. Infochoice's current Australian Mortgage Product Report shows the banks are often the most competitive on fixed rates but there are a handful of non-banks and building societies prepared to undercut them.

More: Fixed rates on the way down