Three year fixed rates lower than variable rates
A fall in fixed rates has increased the portion of home-buyers who buy fixed-rate mortgages. Lenders have dropped their three-year fixed interest rates by 1.11 percentage points, on average, since June last year.
Almost 10 per cent of borrowers are opting to fix their loans – the highest since the depths of the GFC in 2008. The standard variable rate of the major banks is 7.39 per cent, on average, and 6.33 per cent among all lenders on their three-year fixed rates.
However, most borrowers are likely to be paying lower rates than the major banks' standard variable rates, with most paying closer to 6.68 per cent.
Source: The Age