New cheapest fixed rate in Australia as Greater Bank plunges to 1.59%

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The Greater Bank cut its one- and two-year fixed rates by 10 basis points, announcing a new price of 1.59%, the lowest fixed-rate home loan available in Australia.

Market-leading Greater Bank’s new 1.59% is 20 basis points ahead of its closest competitors, with the second cheapest rate in the one-year category being 1.79%, available from from UBank, RACQ, Hume Bank and Bank of Us.

Over two years, the second best result is also 1.79%, which can be found at St George Bank, Bank of Melbourne and Homestar Finance.

The move further signals that lenders do not anticipate a hike in cash rates over the next two years as Reserve Bank of Australia Governor Philip Lowe held firm on the high-profile date of 2024. .

The Greater Bank is clearly convinced that this timetable will not be brought forward, setting an interest rate of 2021 that can go until 2023 at the earliest.

As lenders now move to cut fixed rates to one and two years, there have been almost uniform rate hikes on longer term fixed rate home loans.

Variables were also slashed across the board, offsetting the rate hike that came with uncertainty about the RBA’s stance as several large banks publicly announced they believed rates would hike before 2024.

READ MORE: What the NAB Fixed Rate Hike Means for Home Loans in 2022


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