Fixed Interest Rates have Continued to Decrease
Fixed Interest rates have continued to decrease since our last update. Whilst the flavour of the month for many banks has been the 4 year fixed home loan with P&I repayments (with rates as low as 1.99%), most banks are now increasing them in favour of lowering the 2 year fixed rates.
Variable Interest Rates
In regard to variable interest rates, the ‘Basic’ variable rates tend to be still lower than variable rates that normally come as part of a ‘package deal’ with the banks. These package loans include what the basic loans don’t. That is: they do come with fully Offset accounts/ allow for more flexibility in what you can do/ have free valuations/ often have free credit cards & allow for loans to be split between variable and fixed.
How much lower can the fixed rates go?
How much lower can the fixed rates go? Well everybody has an opinion. Many economists are suggesting it probably wont go down much further, if at all. Hence, the reason why we are seeing a lot of our clients requesting loans be split so a large portion is fixed to take advantage of the enticing rates.