Fixed rate home loans cheaper than standard home loans

Fixed rate home loans move independently of variable rates, and many fixed rate home loans are still competitive, with borrowers able to lock in rates for less than the new standard variable home loan rate of 7.32 per cent. For example, ANZ's three-year fixed rate is 6.85 per cent; Commonwealth Bank's is 6.89 per cent, as is Westpac's and National Australia Bank's at 6.69 per cent. But the Mortgage Industry Association says the prime time to set or fix your interest rate is before interest rates move: “Once an increase is announced it may be too late to get much advantage.”

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