Rates are tumbling

By Graeme Salt

Fixed interest mortgage rates are tumbling as the banks prepare for rate cuts likely next year.

Recently the country’s fifth-largest lender, Macquarie Bank, slashed a range of fixed rates by up to 0.40 percentage points.

Such that now, of the lenders I can work with, the cheapest 3-year fixed mortgage is 5.39 per cent, whereas the variable counterpart is 5.88 per cent

Twelve lenders including Teachers Mutual Bank and Adelaide Bank have how cut more than 300 different rates across both investor and owner-occupier loans.

Many current borrowers are paying interest rates of more than six per cent, so refinancing to rates around 5.39 per cent may well be major help to their cash flow.

But, with .75 per cent rate cuts predicted in 2025, it may be by the end of next year variable rates will below these fixed rates soon.

Looking at refinancing your mortgage may well be an option.  But with interest rate relief on the way, when to do this is the question.

If you want to discuss your finance needs, please contact me on 02 9922 5055.

Graeme Salt is an award-winning mortgage broker.  For a no obligations consultation on your home loan needs, please contact him on 02 9922 5055