More home loan discounting in September

Price cutting continues to be the dominant feature of the home loan market, with lenders discounting both variable and fixed rates.

Suncorp Bank launched a discounted standard variable rate offer of 4.69 per cent on its Home Package Plus loan and is waiving the A$375 annual package fee on new loans.

Other elements in the package include a transaction account with a mortgage offset facility and the option of up to nine sub-accounts.

According to Mozo's September Banking Insights Bulletin, ANZ cut the variable rate on its Simplicity Plus loan for a limited time- down six basis points to 5.12 per cent.

Mozo said Aussie was cutting variable rates five or six basis points, depending on the loan size.

The lowest variable rate in the market is 4.54 per cent, which is being offered by loans.com.au.

Mozo said there was plenty of action in the fixed rate end of the mortgage markets, with a number of lenders cutting rates over the past month. They include Suncorp, Bankwest, Citbank, Aussie, Teachers Mutual Bank, Newcastle Permanent, Bendigo and Adelaide Bank and BankVic.

The lowest three-year fixed rate in the market is 4.49 per cent, offered by Newcastle Permanent, and the lowest five-year rate is eMoney's offer of 4.77 per cent.