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Cheaper rates for big deposits as banks 'price for risk'

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Bank profits haven't been smashing any records lately, partly because the home-loan market is growing at its weakest pace on record.

While this soft market is bad news for bank shareholders, however, it's more positive for home-loan customers, because the sluggish growth is pushing lenders to compete aggressively on price. That is especially the case for those who have paid down a decent chunk of their mortgage, or have saved a larger deposit.

Several banks are offering cheaper interest rates for loans with an LVR below 70 per cent.Credit:Dion Georgopoulos

A little-known but potentially important change of recent times has been a trend towards cheaper loans for people who have more equity in their property.

Increasingly, some of the country's biggest banks are offering deeper discounts on mortgage rates for people........

© Brisbane Times