More and more Australian banks are reducing rates on their fixed-rate loans as the expectations of a rate rise by the Reserve Bank of Australia weaken.

Westpac-owned St.George Bank has again cut its three-year fixed home loan rate by 0.15 per cent pa to a market-leading 6.39 per cent pa for Advantage Package customers. It has also decreased its Advantage Package two-year fixed home loan rate by 0.05 per cent pa to a competitive 6.39 per cent pa.

St.George Chief Executive Rob Chapman said Thursday’s announcement is the latest in a series of recent fixed rate decreases.

“This is the fifth cut to St.George’s competitive fixed home loan rates since July this year. Over this time, our popular three-year fixed home loan rate has decreased 0.90 per cent pa to its current low rate of 6.39 per cent pa,” he said.

St.George Bank’s fixed home loan offers are available now for new and existing customers. Customers can split their home loan between fixed and variable rates, as well as a range of other flexible home loan options

Credit Union Australia also announced Thursday it would cut its three-year fixed-rate home loan by five basis points to 6.34 per cent.

Thursday’s rate cuts come after Westpac earlier this week announced it had reduced rates on several fixed-rate home loan products - slashing its three-year Premier advantage package by 15 basis points to 6.44 per cent and one and two-year loans by 20 basis points to 6.49 per cent.

Loan Market, one of the nation's leading lenders, said global financial uncertainty has led to an unprecedented demand for fixed-rate mortgages.

"Despite the prospect of a long overdue cash rate cut, consumers have been taking a close look at these highly attractive fixed rate packages on offer,'' said Dean Rushton, chief operating officer of Loan Market.