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) |
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| Standard Variable | Package Variable | 1 Year Fixed | 3 Year Fixed | 4 Year Fixed | 5 Year Fixed |
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Average | 4.64% | 4.35% | 4.35% | 4.31% | 4.66% | 4.70% |
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Min | 3.59% | 3.64% | 3.50% | 3.74% | 3.99% | 3.99% |
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Max | 5.84% | 5.10% | 5.34% | 5.24% | 5.59% | 5.59% |
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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 |
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Table: Investment Home Loan Market – Snapshot of the current market (3/6/2016) |
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| Standard Variable | Package Variable | 1 Year Fixed | 3 Year Fixed | 4 Year Fixed | 5 Year Fixed |
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Average | 4.86% | 4.63% | 4.55% | 4.53% | 4.84% | 4.88% |
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Min | 3.84% | 3.95% | 3.59% | 3.89% | 4.39% | 4.49% |
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Max | 6.03% | 5.37% | 5.34% | 5.34% | 5.69% | 5.69% |
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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 |
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“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.