On the eve of a Reserve Bank cash rate announcement expected to reveal no change, HSBC has cut its 2-year fixed rate to match the lowest in the market.”

The lowest home loans in the market are now offered by the subsidiaries of two global giants, HSBC and ING.

Fixed rates have become the competitive instrument of choice by the banks as they jostle for their share of quality business. 2-year fixed rates were cut by an average of -0.39% in May.

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Canstar’s finance expert, Steve Mickenbecker said, “through their sharp pricing, HSBC and ING are again confirming their appetite for home lending in the Australian market, having lifted share by 0.20% and 0.08% respectively over the past 12 months.”

“We’ll see what Tuesday brings from the Reserve Bank, but one thing we can be sure of is the robust competition for home lending.”

“The gap between the average variable rate of 3.47% and the lowest two year fixed rate of 2.09% has blown out to 1.38%, a compelling refinancing argument for Australian home borrowers.”


HSBC has cut 2 and 3-year fixed rates by between -0.06% and -0.16% for owner occupiers paying principal and interest.

The lender also cut its Premier Standard Variable Rate by -0.05%.