Now may be the time to fix your mortgage: John Symond

Aussie Home Loans founder and executive chairman John Symond is encouraging borrowers to fix at least a portion of the mortgage repayments after the mortgage broker became the latest lender to cut its fixed-rate product suite.

Aussie has cut its three-year fixed rate to 6.29% per annum, pointing out that this is “considerably lower than the average advertised standard variable rate of the four major lenders at 7.8%”.

It beats the three-year fixed rate of 6.48% being offered by the Commonwealth Bank, which owns a third of Aussie.

According to mortgage comparison website, Aussie (alongside AMP) now offers the third cheapest three-year fixed rate product behind Newcastle Permanent (5.99%) and Homestar Finance (6.25%).

Symond points out that the RBA would have to cut the cash rate six times (assuming cuts of 25 basis points) to bring it in line with its current fixed-rate offering and says the time is right for home owners to consider locking in at least part of their mortgage, as the current fixed rates are extremely competitive.

"Over the years I have advised people to stick with variable and pay off as much as you can in order to pay the loan off faster," he said. "However, with these competitive rates, it makes sense to lock away part of your loan as an insurance policy against global uncertainties," he adds.

"The cost of funding is quite high and while the current round of aggressive fixed rates may be good news for consumers, they may not last forever, so it pays to look at your home loan now," he says.

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Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer


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