Trending News 31 May

First lender smashes through 3 per cent barrier

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 0.50 percentage points to 2.99 per cent.

Greater also cut two-year rates to 3.39 per cent and four and five-year fixed rates to 3.64 per cent.

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

One Aussie bank is run by women

Financial services and banking remains one of the most male dominated industries in Australia but one bank is now completely dominated by women.

Five out of eight board members at Bendigo and Adelaide Bank will be women. With the retirement of chair Robert Johanson after 31 years on the board, Jacqueline Hey will be the new chair. 

Mr Johanson said:he was delighted with the appointment of Ms Hey. “She has great business experience.”

Jacqueline Hey said she wanted Bendigo bank to strive to be “Australia’s bank of choice.”

More banks cut home loan rates

National Australia Bank and BankSA have joined the rate cutting war and announced cuts to fixed home loan interest rates for new customers. The Reserve Bank is expected to announce a 0.25 per cent cut in official rates next week.

NAB has sliced 0.20 percentage points from two-year fixed rates for owner-occupiers down to 3.59 per cent (comparison rate 4.93 per cent).

BankSA has announced cuts to fixed rates for owner-occupiers and investors. Two and three rates have been sliced for principal & interest and interest-only products.

BankSA’s two-year fixed principal & interest rate has been trimmed by 0.05 percentage points from 3.09 per cent to 3.04 per cent (5.72 per cent comparison rate).

Bank of Queensland gets aggressive in mortgage market

Bank of Queensland is aggressively chasing new business in the home loan market from owner-occupiers and investors by slashing rates and undercutting rivals.

BOQ and its subsidiary Virgin Money Group have cut two-year fixed rates to 3.44 per cent and three-year fixed rates to 3.39 per cent.

BOQ and Virgin Money have also cut rates for investors. Their investment home loan rates now start at 3.69 per cent.  

“Our fixed rates are some of the most competitive in the market right now,” BoQ’s head of retail banking Lyn McGrath told Mortgage Business “We want to partner with customers to realise their home ownership dreams.”

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