A large scale competition is unravelling, as Australia’s Commonwealth Bank has vowed to beat any rate advertised by its competitors until the end of the month.
The bank has promised to offer new and existing customers opting for variable or fixed-interest loans valued at S$100,000 or more better mortgage rates than those offered by NAB, ANZ and Westpac.
Michael Cant, Executive at Commonwealth, said the bank has not improved fast enough in the competitive mortgage market.
“This ups the ante,” he said, after the bank reduced interest rates on selected fixed loans to up to 0.16 percent a week ago.
“It’s a very simple way of saying, ‘If you’re in the market for a new loan or you want to refinance, we’ve got the best deals in the market’.”
Aside from eliminating a range of fees, a spokesperson from NAB revealed that it has also been offering the lowest standard variable rate for over two years.
Although Westpac claims that its rates are competitive, customers are advised to talk with their bank manager about other deals.
“It’s a smart marketing move by the Commonwealth,” said Damian Smith, Chief Executive at RateCity.
“But as I always say to people, don’t assume the big four are the only places you can get money because there are a lot of other lenders right now who will match and exceed those offers.”
Christopher Zinn, Spokesperson at Choice, reminded customers to be aware of fees and ask their current bank for a better offer.
“You don’t necessarily need to go through the effort of switching,” said Zinn.
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