Westpac's subsidiary brands, St. George, BankSA and Bank of Melbourne have cut two-year fixed rates on their package products by 15bps to 6.44 per cent, and reduced their three-year rate 5bps to 6.54 per cent.

The new fixed home loan rates quoted are effective on Tuesday 6 September.

Bank of Melbourne Chief Executive Scott Tanner said: “These fixed home loan rate cuts coincide with the start of spring real estate season and are available for a limited period of time.”

Bank of Melbourne offers customers the choice 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 Bank of Melbourne Advantage Package’s home loan discounts, packaged customers also gain access to savings on loan service fees, selected credit card and transaction account fees.

By October Bank of Melbourne will have 48 branches across Victoria, having opened 14 new branches during 2011. Over the next five years, Bank of Melbourne will grow to over 100 branches and corporate banking centres, and 300 ATMs, creating up to 800 new jobs in Victoria.