Westpac forecasts higher interests rates: Borrowers warned to brace for higher repayments
Monthly repayments could soon cost borrowers a lot more cash if Westpac’s predictions for rate rises do come to fruit...
Proving there is no end in sight to the price war between Australia's banks, St George has slashed the interest on its suite of fixed rate products once again.
Yesterday, the bank announced it would cut its one year fixed rate to 6.14 per cent, its two year rate to 5.99 per cent and three year fixed rate to 6.09 per cent.
"Our 3 year fixed rate is lower than the four major banks and we're also very competitive against the market for our 1 and 2 year fixed rate.
"This is a good time for customers to review their home loans. Fixed loans give customers the assurance of locking in their repayments for a fixed period, or customers can split their home loan between fixed and variable rates," said Rob Chapman.
St George's move comes just days after Citibank announced it would cut the interest on its suite of fixed rate products, with the lender now boasting a three year fixed rate of 5.75 per cent.
The lender's head of broker distribution, mortgages Aaron Milburn said that fixed rates had never been so compelling.
"I think now is a good time to fix. Fixing now will give borrowers a bit of certainty in these uncertain times. Also, brokers are constantly telling me that any fixed rate that starts with a 5 is a really good rate," Mr Milburn said.
Interest is the amount of money charged by a lender or financial institution for a loan, which is calculated as the percentage of the principal amount paid over the loan term.