A flurry of cuts in fixed mortgages is highlighting increased competition in the space, according to ratings agency Cannex.
Financial institutions reported 46 fixed rate mortgages cuts over the 10 days to October 11.
"Rate decreases in the most popular three-year category averaged a significant 12 basis points. In the five-year fixed rate category an even larger average reduction of 17 basis points was reported to Cannex by institutions," Cannex senior research analyst Harry Senlitonga said.
The three-year fixed rate average fell to 7.33 per cent from 7.35 per cent, while the five-year fixed rate average fell three basis points to 7.43 per cent.
Some cuts have been over 20 basis points and with the three-year money market cash rate falling, Cannex expected more lenders to follow suit in the next few weeks.
Major banks' fixed rates normally track the cash rate but were cut this month, despite the cash rate remaining stable.
The one-year fixed rate average rose two basis points to 7.30 per cent.
