AMP Bank cuts rates

The AMP Essential Home Loan will be reduced from 4.90 per cent per annum to 4.74 per cent per annum for new customers.

The lender’s new three-year fixed term will be 4.85 per cent, 24 basis points lower than the previous rate of 5.09 per cent.

The new two-year fixed term will be 4.85 per cent, 0.14 per cent lower than the previous rate of 4.99 per cent.

“We know that for most Australians, owning their own home is the most important investment they will ever make,” AMP Bank chief operating officer Rob Slocombe said.

“AMP Bank’s new fixed-rate terms are some of the most competitive in the market, and we are pleased to be able to offer customers an attractive rate to purchase their own property sooner,” Mr Slocombe said.

The move by AMP comes after last week’s rate cuts by the big four.

CBA was the first to lead the charge, reducing its five-year fixed-rate home loan to 4.99 per cent – the lowest five-year fixed rate in the bank’s history.