Fixed interest rates at lowest point since the GFC 23/08/12

A recent study has shown that fixed interest rates are now at the lowest point since the Global Financial Crisis. Since July this year, 46 major lenders, including the big four have lowered their 3 year fixed loan rate.

With that being said it is no wonder many more property buyers are now opting to secure a fixed rate, especially seeing as several lenders have now slashed their fixed rates by between 30 and 40 basis points with the average reduction being 9 basis points.

The Australian economy has not seen fixed interest rates this low in more than 3 years and there are rates as good as 5.5% out there if you know where to look. Although the variable interest rate is still the most popular choice among buyers, I certainly believe that we are going to see a dramatic increase in the amount of buyers securing their 3 year fixed rate loans at the discounted rate.

This time last year the amount of buyers opting to secure fixed home loan rates was 6.9% and that number has already risen to approximately 10% in such a short period of time. Although the figures may sound tempting, I still believe that before anybody goes out to secure a loan, they first speak with a qualified, independent mortgage broker or finance professional. Generally lenders will not do themselves out of money so in more instances than not, the lender will come out better off the back of a fixed rate loan, however that is not to say that it is impossible to have a win.


Sam Rapke

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