In good news for investors, two non-major Australian lenders have announced fixed rate reductions.

Super fund-owned lender ME has cut its three-year fixed rate below 3.80%.

Effective from last week, ME’s flexible home loan three-year fixed rate has been dropped 0.1% points to 3.79% for owner-occupiers. For investors, the three-year fixed rate has been reduced by 0.1% to 3.89%.

Both rates are available for all customers, both principal and interest and interest-only repayments, with no LVR restrictions.

Earlier this month, ME slashed home loan variable rates for new owner occupier and investment customers on its Basic Home Loan and Flexible Home Loan with Member Package.

Fellow non-major Auswide Bank has announced a rate reduction on its two and three-year fixed rate home loans to 4.19%, as well as cut its discount package variable rates to 4.29%.

The rates apply to new investment home loans of $150,000 or more and are available for LVRs up to 90%.

“Our investment home loans include features such as 100% offset account and online redraw, even on these low fixed rate offers,” managing director, Martin Barrett said.

According to 1300HomeLoan managing director, John Kolenda, interest rates are likely to remain at these historical lows for the next decade.

“Consumers are now very rate sensitive and when [rates] rise they are likely to stop spending and revert to saving.

“This is why we will see rates remain at historical lows or around levels we have experienced for the last number of years. Over the short term it will likely be lower.”

The cash rate has been below what was once considered the normal level of 5% since November, 2008, when the GFC was at its peak.