Super low fixed loan rates offer rate relief

Borrowers looking to beat rate rise pain should look outside the Big 4 banks and consider locking in one of the super low fixed loan home rates currently available from a number of competitive non-big bank lenders.
According to banking comparison website Mozo.com.au, Resi, AMP and Mortgageport are all offering three year fixed home loan rates under 7%.
More than 20 other lenders currently offer three year fixed home loan rates at least 0.5% lower than the Commonwealth Bank’s new 7.81% standard variable loan rate.
The average standard variable home loan rate is currently sitting at 7.15% and this is set to increase over the next month as lenders pass on the Reserve Bank’s 0.25% rate rise.
Rohan Gamble, managing director of Mozo said: “Borrowers who act fast can still lock in a super low fixed rate to protect themselves from rate rise pain.
“With the market expecting the Reserve Bank to raise rates by an additional 0.25% to 0.5% over the next 12 to 18 months, now is the time to take advantage of the current crop of competitive fixed rate deals while they last.”
Data crunched by Mozo shows that a Commonwealth Bank customer paying the bank’s new standard variable rate of 7.81% on a $300,000 loan could save $160 a month by switching to AMP’s Basic 3 Year Fixed Rate loan at 6.99%. Once discharge fees and introductory fees are taken into account, the customer would save $1,320 in their first year and nearly $2,000 each year after that1.
Borrowers looking for a better deal on their home loan can go to Mozo.com.au to independently compare fixed and variable rate home loans from over 50 banks, credit unions, building societies and non-bank lenders.
Top 5 Fixed Home Loan Rates
Loan 3 Year Fixed Rate
Mortgageport 3 Year Fixed Loan 6.89%
Resi Fixed & Free 6.98%
AMP Basic Fixed Rate 6.99%
QuickDirect Fixed Rate 7.03%
Yellow Brick Road Gold Pathway Fixed 7.04%
Based on loan amount of $300,000