Home loans – To fix or not to fix?

Standard variable and fixed rate home loan rates are now at historic record low levels. Australians have never paid less in interest to buy their home. But in an ominous sign for borrowers, some lenders are beginning to adjust their rates upwards. And the Reserve Bank is expected to raise official interest rates in the first few months of 2017. That could mean now is a good time to lock in a low rate.

The average variable home loan rate is now …

 

Most Australian borrowers choose a variable rate home loan deal. The average standard variable home loan rate is now about 4.61 per cent. On a typical $300,000, 25 year home loan that equals monthly repayments of $1,686.

 

The lowest variable rate in the Australian market is 3.25 per cent. That rate translates to repayments of $1,549.

Try using the InfoChoice Home Loan Calculator to learn more about how much your home loan repayments might be.

 

The average fixed home loan rate is now …

 

Many borrowers who choose to fix their home loan rate choose a three year fixed period. The average three year fixed mortgage rate is now about 4.16 per cent. The monthly repayments on a loan with this rate (Based on 25 year, $300,000 loan) are $1,610. The lowest three year fixed home loan rate is now 3.49 per cent with monthly repayments of $1,500.

 

The best  fixed rate home loans now …

 

InfoChoice lists more than 2,000 fixed rate home loan products.

The lowest one year fixed home loan rate now available is 3.59 per cent from Greater Bank’s Discount Fixed Ultimate Home Loan Package. QT Mutual Bank and UBank are also offering 3.59 per cent on one year fixed deals.

The lowest three year fixed home loan rate is now 3.64 per cent from Morgan Brook’s Combination Variable loan.

Other very low fixed rate home loan deals include Bank Australia’s Premium Package Loan now charging 3.74 per cent for three years.

Homeloans’ Ultra Plus home loan now charging 3.99 per cent for one year and 3.79 per cent for three years.

ING Direct’s Orange Advantage fixed rate loans are now charging 3.99 per cent for one year and 3.89 per cent over three years.

You can compare all the fixed rate home loan deals and all the variable rate home loans from all of Australia’s major banks and credit unions at InfoChoice.

Source: InfoChoice.com.au

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