Bank Australia drops home loan rates below 3 per cent ahead of RBA meeting

PHOTO: Home loan rates are falling. Photo: Getty

Bank Australia has joined the growing club of lenders offering home loan rates below 3 per cent.

The non-major lender has cut its Basic Home Loan rate to just 2.95 per cent (2.99 per cent comparison rate) in response to increased competition in the mortgage market.

And Bankwest has slashed rates on all of its fixed loans, too.

Commonwealth Bank-owned Bankwest now charges 2.93 per cent (3.84 per cent comparison rate) and 4.09 per cent (3.85 per cent comparison rate) on its fixed 3-year and 5-year owner-occupier loans respectively.

Canstar financial services executive Steve Mickenbecker told The New Daily the cuts reflected the “incredibly competitive” nature of today’s mortgage market.

“Rates are falling even though the Reserve Bank hasn’t met for the best part of two months, so the market’s very competitive and everyone wants to gain market share,” he said.

“Some of them lost a lot during the royal commission, so there’s a real effort to claw back that market share.”