The rate of interest on Home Loans continues to fall on both fixed as well as variable mortgage, but be ready for a rise
More than 80 lenders have decreased their rate of interest in the last month on approximately 100 fixed rate mortgages. Out of them, some even lowered as much as 0.7 percent. Moreover, home loans at variable rate of interest are also continuing to fall with more than dozens of rate on mortgages decreased up to greater than 30 basis points. These figures are revealed by financial comparison site in its recent survey.
Although, the Reserve Bank of Australia kept the cash rate on hold at 2.5 percent even after the announcement made by Governor Glen Stevens who recently highlighted the sharp fall to the Australian dollar.
Mr Glen Stevens said, “The global economy was continuing at a moderate pace and the nation’s weakening property market was an upcoming challenge”.
According to the study conducted by financial comparison site Finder.com.au, the lowest available two year fixed rate in their database is 4.29 percent, whereas for lowest three years fixed rate it is 4.39 percent and for 5 years fixed rate it is 4.79 percent.
All of these three rates described about the Newcastle Permanent. Out of these, the lowest advertised variable rate of interest is offered by loans.com.au that is 4.54 percent.
HSBC’s chief economist Mr Paul Bloxham in his statement said that the Reserve Bank of Australia is unlikely to cut the rates further. However, he further added, “There might be rise in the rate of the interest around next year if Australian dollar will fall further”.
Despite of nation’s cash rate failing to budge in last 14 months, interest rates on fixed as well as variable rate home loans are still falling.