The RBA cash rate has not moved from 2.50% p.a. for 13 consecutive months. The ASX futures curve is predicting another 15 months of cash rate stability.
Variable home loan rates seem set to remain in the range of 4.65% p.a. to 5.10% p.a. (depending on what lender you are with).
Three of the “Big 4” lenders are now offering 4.99% p.a. as a 5 year fixed rate. This is genuinely remarkable. 5 year fixed rates at less than 6% p.a. are as rare as hen’s teeth. The fact that we are now under 5% p.a. is ground breaking.
If 3 year fixed rate terms seem more sensible to you, a reputable “non major” lender is currently offering 4.69% p.a..
Should you feel that your circumstances are not likely to change much over the next 3 to 5 years, fixing your rate is certainly something worth considering.
Give us a call and we can talk through the pros and cons.