Perth-based lender P&N bank has pre-empted the Reserve Bank of Australia on interest rates, cutting the rate on its three-year fixed rate home loans to 5.1 per cent.
The new rate is lower than the big four banks, as well as Bankwest, which is currently offering a 5.39 per cent per annum three-year fixed rate.
P&N also cut its five-year fixed rate to 5.45 per cent per annum.
Expectations of an interest rate cut by the RBA have grown over the past fortnight after a rise in unemployment and a dip in new home building approvals, as well as news inflation remains under control.
P&N chief executive Fred Huis said he believed the bank’s new low fixed rates would have great appeal to WA homeowners.
“I am pleased that as WA’s only locally owned and managed banking institution, we are able to offer existing and prospective members this very competitive low rate for an entire three-year term,” Mr Huis said.
“Together with our very attractive current home loan switching offer, P&N Bank is proving a very viable and cost-effective banking alternative to the big four banks for WA home owners.”
