Banks continue to move on rates

Written by
Huntley Mitchell
Published by The Adviser : 18 July 2016
http://www.theadviser.com.au/breaking-news/34734-banks-continue-to-move-on-rates?utm_source=TheAdviser&utm_campaign=18_07_16&utm_medium=email&utm_content=2&mc_cid=a734c0eb80&mc_eid=acb5193df0

One of the big four banks has significantly reduced fixed rates for investors, while a non-major has targeted owner-occupiers with new pricing.

ANZ confirmed that it has reduced its fixed rates for investors by 45 basis points, which now sees the major bank’s standalone two-year rate start at 4.14 per cent, and at 3.99 per cent as part of its Breakfree package.

Meanwhile, Bank of Sydney (BOS) has reduced the owner-occupier variable rate on its Expect More Home Loan by a further 9 basis points to 3.79 per cent.

The bank’s new rate is available for loans with a maximum LVR of 70 per cent and where the property is located in metro postcodes. Borrowers must also be PAYG employees to qualify for the new rate.

The Expect More Home Loan also offers a 100 per cent offset account and an annual fee-free credit card, and is available for purchases and refinancing.

Steve Sampson, head of third-party distribution at BOS, said the bank’s three-year fixed and variable rate of 3.88 per cent is still available for owner-occupiers with a maximum LVR of 80 per cent, and that full banking facilities are available at BOS’ network of 16 branches.

“It’s a really aggressive owner-occupier market out there and we are determined to keep pace with our competitors to ensure our customers are receiving competitive pricing and service levels,” he said.