Five year fixed rate terms found under 4 percent: Canstar

Five year fixed rate terms found under 4 percent: Canstar
Five year fixed rate terms found under 4 percent: Canstar

Canstar advises that five year fixed rates terms can now be found at under 4 percent.

Thanks to the May cut in official cash rate, research and comparison site canstar.com.au advises that borrowers with some equity can now potentially lock in a home loan interst rate of less than 4 percent across all loan terms up to and including 5 year fixed.

“The cash rate is at a historic low and this is fantastic news for home owners wanting to refinance their mortgage,” said Canstar group manager, research & ratings, Mitchell Watson.

“For the first time our database of more than 1,000 home loans is showing advertised interest rates of less than four percent across all loan terms, including 5 year fixed. Prior to the most recent rate cut the lowest 5 year fixed home loan advertised rate on our database was 4.34 percent; it’s now 3.99 percent for owner-occupiers.”

Current highest, lowest and average advertised home loan rates 

Table: Residential Home Loan Market – Snapshot of the current market (3/6/2016)

 

 

Standard Variable

Package Variable

1 Year Fixed

3 Year Fixed

4 Year Fixed

5 Year Fixed

 

Average

4.64%

4.35%

4.35%

4.31%

4.66%

4.70%

 

Min

3.59%

3.64%

3.50%

3.74%

3.99%

3.99%

 

Max

5.84%

5.10%

5.34%

5.24%

5.59%

5.59%

 

Source: www.canstar.com.au, the search results do not include all home loan providers, and may not include all features relevant to you. Advertised rates of products on CANSTAR database

 

 

 

 

 

 

 

 

 

 

Table: Investment Home Loan Market – Snapshot of the current market (3/6/2016)

 

 

Standard Variable

Package Variable

1 Year Fixed

3 Year Fixed

4 Year Fixed

5 Year Fixed

 

Average

4.86%

4.63%

4.55%

4.53%

4.84%

4.88%

 

Min

3.84%

3.95%

3.59%

3.89%

4.39%

4.49%

 

Max

6.03%

5.37%

5.34%

5.34%

5.69%

5.69%

 

Source: www.canstar.com.au, the search results do not include all home loan providers, and may not include all features relevant to you. Advertised rates of products on CANSTAR database

 

“Investors aren’t quite as lucky, the minimum and average interest rates on offer are higher than for owner-occupiers. Nevertheless there is significant variance between rates on offer – definitely shop around,” said Mr Watson.

You can search for a home loan and compile tables of the lowest-rate home loans on the Canstar database here.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

Tags: 
Interest Rates Home Loans

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