A Reserve Bank rate cut from the current cash rate of 3.25 per cent this Melbourne Cup Day could see the official cash rate approach record lows.
With the current official interest rate at its lowest in three years, in fact it's at its lowest since the GFC, this means there's an opportunity to reassess your home loan.
If there's other providers that can offer you a lower variable rate then you could switch. But you could go a step further and lock in these low rates before it's too late with a fixed rate home loan. A fixed rate loan could benefit you greatly in the future and save you thousands in interest if or when rates start to rise again.
Would I benefit from a rate cut?
A possible interest rate change on the cards doesn’t ensure any benefits will be passed on in full to a variable rate mortgage holder. As a result, doing a quick variable home loan rate comparison could help you find the best rate around for your mortgage needs.
Should I fix it?
More than 11.2 per cent of mortgage owners enjoy the stability of a fixed rate loan, according to the Australian Bureau of Statistics.
Knowing the exact amount due each month for your home loan repayments can be a big drawcard for some consumers, making it easier to manage the household budget and giving them security and safety in the knowledge that if interest rates start to rise again they will not suffer increased mortgage repayments.
Moneyhound compares some of the current low rates from 3-year fixed rate home loans:
- 5.13% p.a. UBank UHomeLoan for Refinancing Fixed Rate Loan
- 5.29% p.a. HSBC Premier Fixed Rate Loan
- 5.30% p.a. CUA Fixed Rate Home Loan
- 5.38% p.a. Newcastle Permanent Building Society Fixed Rate Home Loan
- 5.39% p.a. ME Bank Super Members Home Loan Standard Fixed Rate Home Loan
Could you get a better home loan deal? Find out at Moneyhound.