Since the RBA rate hike announcement on Melbourne Cup day, most of the media attention has been centred around variable interest rates and the added costs to monthly mortgage repayments for Australian home owners.
But savvy borrowers who can act fast can beat rate rise pain by locking in one of the super low fixed rate home loan rates currently available from a number of smaller lenders.
Mozo’s team of rate chasers have chased down three home loan providers – Resi, Mortgageport, and AMP – offering three year fixed home loan rates under 7%.
What’s the savings?
Let’s look at a Commonwealth Bank customer paying the bank’s new standard variable rate of 7.81% on a $300,000 loan. If they switch to AMP’s Basic 3 Year Fixed Rate loan at 6.99% they could save $160 a month. 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 that.
In addition, there are more than 20 providers which 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 Top Fixed Home Loan Rates are:
|Lender||Loan||3 Year Fixed Rate %|
|Mortgageport||3 Year Fixed Loan (LVR 65-90%)||6.89|
|Resi||Fixed and Free||6.98|
|AMP||Basic Fixed Rate||6.99|
|QuickDirect||Fixed Rate Home Loan||7.03|
With the market expecting the Reserve Bank to raise rates by an additional .25% – 0.50% over the next 12 – 18 months now is the time to take advantage of the competitive fixed rate deals while they last.
Compare all fixed rate home loans at mozo.com.au. Be quick!