The Reserve Bank has kept the cash rate on hold at 1.5 per cent today, marking two years since official rates last moved.
RateCity.com.au shows lenders have dropped fixed interest rates by up to 72 basis points on more than 120 products. Commonwealth Bank cut its fixed rates by 10 basis points, while ANZ cut some of its fixed rates up to 24 basis points.
Sally Tindall, research director at RateCity, said banks were slashing fixed rates in a bid to win market share.
“Growth in home lending has started to hit the brakes, while non-bank lenders are gaining traction. As a result, banks are throwing everything at fixed rates to keep new customers coming through the door,” she said.
“This makes it the perfect environment for refinancers, particularly if you have a bit of equity up your sleeve, but only if you’re willing to fix.
“While the cash rate is unlikely to increase before 2020, more than half a million variable rate customers have already been hit with higher rates due to cost of funding pressures, with more hikes expected to follow.
“If you like the security of knowing your rate won’t go up, then a low fixed rate could be the answer you’re looking for.
“With rates at near-record lows, now wouldn’t be the silliest time to fix.”