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Fixed home loan rates continue to fall

23 August 2011 4:29PM
Another week of falling rates in the financial markets saw another week of lenders trimming their fixed home loan rates.Some lenders have cut these three times over the past month. ANZ cut its three-year fixed rate on July 22, July 29 and August 17 - a total reduction of 75 basis points, from 7.19 per cent to 6.44 per cent.Aussie actually increased its three-year rate by 15 basis points late in July, before cutting it twice (a total reduction of 90 basis points) this month.The latest lender to announce rate cuts is Firstfolio, which yesterday cut its three-year rate by 30 basis points to 6.29 per cent. As a result, Firstfolio has bragging rights to the cheapest three-year rate on the market.On Friday, Greater Building Society cut its one, four and five-year rates; Westpac cut its three-year rate, by 20 basis points to 6.59 per cent; and Citibank cut its one, two and three-year rates. According to Infochoice, one-year rates have come down by an average of 19 basis points over the past month to 6.81 per cent; two-year rates by an average of 25 basis points to 6.87 per cent; three-year rates by 27 basis points to 6.94 per cent; four-year rates by 33 points to 7.3 per cent, and five-year rates by 33 points to 7.38 per cent.Some of the biggest cuts have been made by HSBC, which has taken 79 basis points off its three-year rate, Bankwest, which has taken  95 basis points off its two-year rate, and Homeloans, which has cut its two-year rate by 105 basis points.

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