Australian lenders continue to slash fixed home loan rates amid the Reserve Bank of Australia’s decision to keep the official cash rate steady at 4.75 per cent, where it has sat since November last year.

RAMS Home Loans today announced the launch of a discounted two year fixed home loan rate of 6.35%p.a to meet the growing local demand for mortgage repayment certainty.

RAMS CEO Melos Sulicich said, “With the pressures of increasing interest rates, people are shopping around and seeking a more affordable home loan choice.”

“The advantage of a fixed rate loan in the current environment is the security of knowing exactly what your mortgage repayment commitment will be from month to month.”

RAMS said it is offering customers a financial break by reducing two year fixed rate by 24 basis points to 6.35% p.a. and cutting the 3 year fixed rate by 20 basis points to 6.39% p.a. in line with its competitive Standard Variable Rate home loan.

National Australia Bank on Tuesday also reduced its entire range of packaged fixed rates, lowering its two and three-year rates 10 basis points to 6.39% and 6.44%, respectively, and its one-year rate by 15 basis points to 6.34%. The move follows a new round of rate reductions last week which saw Westpac, St. George, ING Direct and Firstfolio all slash rates.