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Adelaide Bank cuts interest rate to lowest level in more than three years

22 May 2012
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Adelaide Bank today announced a reduction in fixed interest rates to 5.99% for one, two and three year loans. 

Head of Mortgage Broking, Scott Erickson, said “Five year fixed loans are now at 6.59%, which is the lowest 5 year rate for the Bank since March 2009. 

“Adelaide Bank’s fixed rate loans come with 100% offset 100% of the time, which means that there is the potential for an even better rate for those keen to save on their mortgage.  

“Based on a $300,000 loan, if the borrowers offset balance equates to $5000, their effective rate would be in the vicinity of 5.83% for a one, two or three year fixed term. 

“Interestingly, with our current fixed rate portfolio, the average balance of the offset account is a great deal higher than $5000, which indicates that many people should benefit from the lower rate on offer. 

“Our 100% offset on fixed rates not only provides customers with certainty of repayments, it also an opportunity to reduce their debt and own their home faster.  It’s a case of less is more for homebuyers.  

“The convergence of rising rents, lower interest rates and subdued property markets will no doubt rekindle interest in buyers seeking to enter the housing market for the first time”, Mr Erickson concluded.

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