Fix your home loan now and save big
Article by Mozo
It’s a rare time when you can get fixed rate home loans well below variable rates, but that time is now. These offers won’t last forever so it’s time to act.
With interest rates expected to continue climbing in the next 12 to 18 months, locking in a fixed rate could save you thousands of dollars – particularly if you’re stuck with a less than pretty variable rate from one of the big banks.
In fact, many lenders are offering up fixed rates well below the variable rates of the Big 4. In the mix are Resi and AMP – both with 3 year fixed rates under 7%, not to mention some very valuable peace of mind as an added bonus.
Say you’re with Commonwealth Bank with their standard variable rate of 7.81% on a $300,000 loan. By switching to AMP’s basic 3 year fixed HomeLoan you could save yourself a tasty $160 a month. Once exit fees and introductory fees are taken into account, you’d save $1,320 in the first year and nearly $2,000 every year after that.
3 year fixed rate home loan picks
|LENDER||PRODUCT||3 YEAR FIXED RATE||HIGHLIGHTS|
|Mortgageport||Year Fixed Loan HomeLoan||6.89%||Lowest fixed rate on the market|
|Resi||Fixed and Free HomeLoan||6.98%||No annual fees|
|AMP||Basic Fixed Rate HomeLoan||6.99%||Ability to split between fixed and variable|
|QuickDirect||Fixed Rate Home Loan||7.03%||No upfront fees|
Rates correct as at 10/11/2010
These rates won’t last forever, so if you’re ready to make the switch read on below for our home loans switching guide.