In particular we focus on getting the loan structure right the first time, choosing which lenders to use in the right order (yes this is important) and finally getting our clients the best deal possible.
Fixed rates are heading up.......
Fixed rates are heading up.......
Longer term fixed rates have been creeping up of late. CBA, Nab, Westpac and ING all moved their 4 year rates up in the last few weeks. While the moves themselves were not huge it signals that we may have finally hit the bottom for interest rates. We no longer have any sub 2.00% longer term fixed rates available.
We also note that the Reserve Banks Term Funding Facility which the banks have been using to fund cheap fixed rate mortgages since the pandemic first hit is coming to an end on June 30. The banks have been using this facility to borrow from the Reserve at 0.10% pa for 3 years which in turn has meant banks have been able to offer cheap 1,2- and 3-year fixed rates.
In short, the days of < 2% fixed rates may be coming to end. So, if you have been tossing and turning about fixing in your loans NOW is the time to decide.
Fixed rates for 2 and 3 years are still available with from around 1.80% pa for owner occupiers with P&I repayments and 2.24% pa for investors with P&I repayments. Interest only repayment are slightly higher again.
As always please consider the potential break costs and the reduced flexibility with fixed rates before fixing. Please feel free to call to discuss.
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