152 rate cuts across financial institutions in April: Canstar

152 rate cuts across financial institutions in April: Canstar
152 rate cuts across financial institutions in April: Canstar

In April there were 81 cuts to variable interest rates for homeowners, and 71 for investors, a clear sign of the competition heating up, according to Canstar.com.au.

For homeowners, variable rates were cut by an average of -0.20% for those paying principal and interest and -0.30% for those paying interest only, while for investors, the average cut was -0.21% for both principal and interest and interest only.

By swapping from the average variable rate of 3.49% to the lowest variable rate in the market (2.39% with a loan to property value ratio of 80%) mortgage holders can reduce their monthly repayments by $236.

Likewise, by moving from the average 3-year fixed rate of 2.68% to the lowest rate of 2.09% borrowers can pocket an extra $122 every month.

Canstar home loan expert, Steve Mickenbecker says, “with rates as low as 2.09%, you should be looking to lower your loan costs to put more money in your pocket each month or allow you to pay off the loan faster.”

“Even the big guys have come to the party, with one of the major banks offering a 2-year fixed rate at 2.19% and all of the major banks offering 3-year fixed rates down to 2.29%."

“With restrictions in some states lifting on open houses and auctions, the record low interest rates might now encourage buyers back into the market. Buyers should be bargain hunting for the right loan, not just the right property.”

Tags: 
Home Loans Rate Cuts

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