If you don’t have a fixed rate home loan, now is the time to think seriously…


Following the Reserve Bank’s cut in the cash rate made in response to the Coronavirus pandemic caused economic downturn, the official cash rate is now just 0.25%, the lowest it has been in 23 years.


Following the RBA’s announcement to cut the cash rate, the big four banks cut fixed home loan rates for 1, 2 and 3 years quite significantly.


Depending on the bank and whether you take a 1,2- or 3-year fixed rate, the rates are as low as 2.14% p.a.


Some of the lesser known minor financial institutions are the most competitive.


The new rates came into effect at the beginning of May.


Locking in a fixed rate could be a smart move as it removes anxiety concerning future variable interest rate increases which we may see once the pandemic caused economic crisis has passed.