Variable and fixed rates are the same

The average three-year fixed mortgage rate for banks fell 0.2 per cent over the last six months, from 7.70 per cent in January to 7.50 per cent in July, the latest RBA figures show. In August, Australia's largest four banks had a combined average three year fixed rate of 7.39 per cent, just 0.01 per cent above the average variable rate of 7.38 per cent.

Loan Market national operations manager Ivan Karamatic said several lenders were now cutting their fixed interest rates. He warned people considering fixing their interest rates to be aware that they offer “limited flexibility” and “potentially high exit costs for opting out of the loan”.

Source: Sydney Morning Herald