Westpac-owned St.George Bank now has one of the most competitive rates in the market for two-year fixed home loans, following an interest rate decrease of 0.10 per cent pa to 6.89 per cent pa for Advantage Package customers.

The bank is also reducing its three-year fixed rate mortgage by 0.30 per cent pa to 6.99 per cent pa for packaged customers.

St.George Bank Chief Executive, Rob Chapman, said: “Customers are increasingly focused on managing their household budgets and we’ve seen continued interest in our fixed rate home loans, which provide the reassurance of mortgage repayments locked in for a fixed period.

“The changes we have made to these fixed home loans offer customers some of the most competitive rates in the market.

“We expect these reduced fixed rates to be welcomed by customers seeking greater interest rate certainty.”

Mr Chapman said St.George offers customers the option of splitting their home loan between fixed and variable rates, as well as a range of other flexible home loan options.

In addition to the St.George Advantage Package’s home loan discounts, Advantage Package customers also gain access to savings on home loan, credit card and transaction account fees.