Fixed mortgage rates fall below five per cent

Westpac's Premier Advantage Package home loan is offering a three year fixed rate home loan of 4.99 per cent for a limited time. The Westpac offering is believed to be the lowest rate offered to consumers since 2001. The next cheapest three year fixed rate is 5.99 per cent from RAMS. The percentage of fixed rate home loan sold fell to record low in November of 3.2 per cent, down from 25.3 per cent in February. Mortgage broker AFG said the downside of taking a fixed loan at 4.99 per cent was low. Mortgage Choice said interest in the Westpac three year fixed rate was very high. Westpac's standard variable rate is 6.91 per cent.

Source: The Australian Financial Review