Fixed interest rates are under 5 per cent
The Commonwealth Bank of Australia (CBA) announced that they would be dropping their five-year fixed interest rates to 4.99% and other lenders have since followed the move, with the cash rate confirmed to stay on hold for September.
In what’s been labeled a “mortgage war”, home owners are the winners with RateCity outlining that a five-year fixed loan with a balance of $400,000 will see CBA’s rate reduction lower repayments by $166 a month.
Hours after the sub five per cent announcement, Westpac and NAB retaliated by also cutting fixed rates in an attempt to capture some of the lucrative $1.3 trillion mortgage market and the Reserve Bank of Australia has decided to hold the cash rate steady again in September.
The Sydney Morning Herald announced that under 5 per cent fixed-term rate are now on offer from NAB, with their three year product coming in at 4.94 per cent.
You can fix all or part of your home loan, with the experts at Choice Home Loans stating that no one rule applies to all buyers.
Whether you are considering entering a fixed home loan, or arranging a mixed variable and fixed loan, it’s always best to seek professional advice to ensure that the arrangement is suitable to your specific situation.
If you’re keen to take advantage of the lower interest rates, have a chat to the finance professional at Choice Home Loans today. Contact them at firstname.lastname@example.org or call 1300 2 CHOICE.