With the Reserve Bank of Australia deciding against a cash rate cut, is this a good time to consider locking in your home loans?
The record low interest rate of 2.5% may be tempting for borrowers to consider setting up fixed rates to their loans. The current fixed rate average is at 4.93% for a year’s worth of loan, 5.10% and 5.69% for three and five year loans respectively.
Looking into fixed rates may be tempting, but borrowers should be aware that they will lose the flexibility when locking in their loans. Variable loans still give the borrower payment options unavailable to fixed loan borrowers. Consider getting financial advice before making any changes to your current loan schemes as this could have long term repercussions, as there are talks of a possible cash rate hike by June of next year.
Read more about this on the ABC website.