RBA keeps the cash rate on hold but loan deals continue to fall
IT’S good news for home owners as the Reserve Bank keeps interest rates on hold. But borrowers are being urged to go on the hunt for a better home loan deal.
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HOME loan customers can snare interest rate deals as low as 3.35 per cent as lenders continue to drop their offers even lower.
The Reserve Bank of Australia kept the cash rate on hold today at 1.5 per cent after slashing it last month, but borrowers are being urged to still go on the hunt for a stellar deal.
New data released by financial comparison website Canstar shows there are now more than 130 variable rate loan deals below four per cent.
And when it comes to fixed rate offers there are now more than 200 two-year and three-year fixed rate deals also with a “3” in front.
Canstar’s database shows Reduce Home Loans offers the lowest variable rate deal in the market at just 3.35 per cent.
The cheapest deal on a three-year fixed rate deal is available by Freedom Lend at just 3.59 per cent.
However Canstar’s spokeswoman Justine Davies has urged borrowers not to be complacent and to avoid paying more than they need to because there are so many rock-bottom rate offers available.
“Home loan rates are reasonably low across the board at the moment so it’s easy to decide that you’re already on a good deal and to sit back and do nothing,’’ she said.
“On a $300,00 mortgage even half a per cent difference equates to a monthly saving of around $84 per month.”
Canstar’s database shows on a $300,000 home loan the average standard variable rate is 4.47 per cent and the monthly repayments are $1515.
On the same loan on a three-year fixed rate deal the average three-year fixed rate is 4.09 per cent.
Aussie Home Loans chairman John Symond said borrowers should also speak to a broker to secure a cheaper deal.
“Borrowers need to see a mortgage broker who can find at no charge the most appropriate loan for their needs,’’ he said.
“Borrowers should also ensure they do not over-borrow at the outset as the low rates won’t last forever.”
Originally published as RBA keeps the cash rate on hold but loan deals continue to fall
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