Is it time to lock in a fixed rate home loan?
The Reserve Bank’s official cash interest rate has remained at 2.0 per cent since May 2015 but experts say it could go lower in 2016. However banks face higher funding costs and could raise rates or keep the RBA’s rate cuts for themselves. As a result, an increasing number of borrowers are now choosing to lock in a fixed home loan rate.
Right now, on a 30-year $300,000 home loan, the average three-year fixed interest rate is 4.28 per cent. Data from one of Australia’s leading mortgage aggregators shows more than one in five loans written is now fixed.
Source: Herald Sun