Home News Fixed interest rates fall

Fixed interest rates fall

Font size :
Fixed mortgage rates have fallen amid increased competition among lenders for the owner-occupier market.
 
According to RateCity financial analyst Peter Arnold, fixed rates are generally trending downwards, but not by a huge amount, reports The Australian.  
 
He said fixed rates had fallen to as low as 3.3% for a one-year term.
 
"If you're switching providers just to get that rate for one year make sure you're comfortable with the overall deal you're getting because one year isn't a huge amount of time in the grand scheme of a mortgage", he was quoted as saying.
 
This is seconded by Canstar commentator Justine Davies, saying “certainly in the one-year fixed rate there's heaps of loans under 4%”.
 
"Fixed rates have trended down in line with the cash rate reduction, but not by more than the cash rate reduction", she said.
 
The experts also noted that there are still a number of variable rates sitting under 4% which borrowers could take a look at.
 
"Standards are tightening up on lending to investors, therefore it stands to reason that there's increased competition to get the owner occupiers,” Davies said.
 
Meanwhile, AFG, Australia’s largest mortgage broker, is predicting a more aggressive competition among banks focusing on the owner-occupier market, making it more favourable for borrowers next year. 
 
The broker’s managing director Brett McKeon said: "I think the owner-occupier end of the market's going to be quite fiercely contested over the next 12 months and that's probably where most of the focus will be. It's hard to see better terms than what you've got but I think it might be possible."
 
He also said that it will be no surprise if the banks start to undertake further discounting in terms of upfront rates, application fees and ongoing fees.
 
 

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

Mortgage applications drop in second quarter Mortgage applications drop in second quarter

This marks the “beginning” of a downward trend, says Equifax executive Read more

To break monopoly, many smaller lenders could become banks To break monopoly, many smaller lenders could become banks The proposed change could break the Big Four’s monopoly over the mortgage market and help families get cheaper home loan rates ... Read more

Borrowing against the home: A strategy to pay for aged care Borrowing against the home: A strategy to pay for aged care Such debts can generally be divided into long-term and short-term loans ... Read more

NAB slashes growth forecasts for houses, units NAB slashes growth forecasts for houses, units Numerous factors, including tighter credit rules and the growing supply of new stock, have reined in Australia’s seemingly unstoppable housing market boom ... Read more

More mortgage news and articles

Sponsored Links

Saturday, Jul 22, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords