Time to lock in a fixed rate

BIS Shrapnel’s managing director Robert Mellor said the time to lock in a fixed mortgage interest rate is now. “Fixed rates are currently very reasonably priced. Lenders have seen that there is a market there and they are slashing their rates accordingly,” he said. Mr Mellor said a five year fixed rate was definitely better than a three year rate.

“If a borrower locked in a three year fixed rate, they will find themselves looking for a variable rate when interest rates are climbing back towards historic highs,” he said. Yesterday, Bankwest slashed 44 basis points off its three year fixed rate product, taking it to 6.94 per cent.

Source: The Advisor