Borrowers look to fixed rates as cash rate stalls

Borrowers look to fixed rates as cash rate stalls

The cash rate may have stalled but the appetite for fixed home loans has soared, as Australians look to take advantage of historically low rates.

RateCity.com.au data shows that the number of people looking for fixed home loans has increased 58 per cent in the last seven weeks, in line with the major banks’ decision to lift variable rates, compared with the seven weeks prior.

Sally Tindall, money editor at RateCity.com.au, said there now appeared to be the ‘perfect storm’ for variable home loan customers considering the move to fixed.

“With the cash rate stagnant and variable rates largely on the rise, the eye of the storm now rests on fixed rates which are bucking these trends,” she said.

“Around 10 lenders are currently offering rates of under 4 per cent, fixed until December 2018.

“That’s a pretty competitive deal in today’s market.

“Unsurprisingly, the number of people looking for fixed rates spiked in the days following the big banks’ decision to lift variable rates, up 207 per cent, and then again when higher rates came into play, lifting 49 per cent.

Supporting this, Google Trend data shows an increase in fixed rate search by 38 percent over the same period. Home loan search in general – both fixed and variable – has increased 51 per cent.

“Fixing your home loan is a very personal choice but if you are someone who likes the security of knowing what your repayments will be each month, now might be the time to start exploring your options,” said Tindall.

“At the end of the day, it’s great to see Australians actively seeking out a better deal on their home loans.”

RateCity’s picks for fixed rates

Related links:

Did you find this helpful? Why not share this article?

Advertisement

RateCity

Money Health Newsletter

Subscribe for news, tips and expert opinions to help you make smarter financial decisions

By signing up, you agree to the ratecity.com.au Privacy & Cookies Policy and Terms of Use, Disclaimer & Privacy Policy

Advertisement

Learn more about nonspecific

Can I get a $1,500 payday loan with bad credit?

Yes, it may be possible to get a $1,500 payday loan with bad credit. Some payday lenders give loans to people with bad credit histories if they believe the borrower has the capacity to repay the loan.

Under Australia’s responsible lending rules, lenders aren’t allowed to approve $1,500 payday loans if they don’t believe the borrower can make the repayments.