With the RBA’s recent cut of official interest rates by 0.50%, the majors’ standard variable rates for home loans are now 6.99 to 7.09%. Before the cut, 3-year fixed rates by non-majors were under 6%; they’re now slightly over 6%. It’s interesting that they went up on a substantial decrease in the official rate. My ‘take’ on this is that for fixed rates, lenders are always trying to anticipate the next moves in the market, which is why I suggest that now may be a good time to lock in a rate of around 6%, which is about the same as the best discounted standard variable rates.
The suggestion to fix all or part of your loan will appeal to those who need certainty in their repayments and those who feel that rates aren’t going any lower anytime soon.