Is now the ideal time to lock in a fixed home loan
Mortgage interest rates have been at a record low since the Reserve Bank dropped the official rate to two per cent in June 2015. So is it time to lock in these low rates and fix your home loan?
The jury is out on where rates are heading. Banks and other lenders have started raising rates for investors. It might be possible that owner occupier loans will start heading up too. If you choose to fixing your home loan rate you are betting against the banks and you are saying you believe rates will go up therefore you will be better off if you lock in now.
One big mortgage aggregator, AFG, reports that demand for fixed rate loans has fallen 2 per cent to just 15 per cent of all home loans issued. That could mean that buyers think there may be more rate cuts ahead.
Source: Herald Sun