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Fixed rate offerings heat up

Competition amongst the banks is gathering momentum in the fixed rate arena with ANZ the latest to announce changes to its two year fixed loans.

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Last week, ANZ became the third lender in as many days to slash its rates, cutting its two year fixed rate by 0.5 per cent, taking it to just 7.19 per cent.

Days earlier, both ING DIRECT and Westpac cut the interest on their respective fixed rate mortgages.

ING DIRECT cut up to 0.20 per cent from its fixed products, taking its two year fixed rate to just 7.39 per cent from 7.54 per cent.

Westpac cut the interest on its two, three, four, five and 10 year home and investment property fixed loans.

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ING DIRECT’s executive director of mortgages Lisa Claes said ING DIRECT’s rate cut was just one of the many product enhancements the bank was currently making in order to provide a better suite of products.

“The enhancements we have been making at ING DIRECT seem to be having a positive influence on competition, and ultimately, it is having a positive effect on what is available to Australian home loan customers,” Ms Claes said.

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