Home Loans are at a Six-Year Fixed Rate High
New research data has shown that 17.4% of Australian home loan borrowers are choosing to fix their home loan interest rates, which is the highest recorded number of fixed-rated loans since the beginning of the global financial crisis (GFC).
Finder.com.au recently concluded from their analysis that the average rate of fixed interest loans from the main four financial institutions of Australia had fallen significantly in the last two years from 7.23% to 4.98%.
Despite many experts predicting that there will be at least one further rate cut by the Reserve Bank of Australia (RBA), many home loan applicants are choosing to fix their interest rates out of fear that they will miss out on the record-low rates available now.
Home loan experts have warned that when choosing between a fixed rate loan and a variable rate loan, applicants should make sure that they research all of the potential additional costs that may be associated when you choose a fixed interest rate loan.