It’s a tough call to decide if now is a good time to lock in your home or investment loan with a fixed rate. It depends on many variables particular to your specific situation so call Giles at Home Loan Station to discuss your circumstances and see what your immediate savings will be.

Owner/Occupied loans with Principal & Interest repayments, with the Loan-to-Value ratio < 60% – Then the lowest variable rates at the moment are around 3.0%. Larger more reputable banks have specials starting at 3.18% & 3.24%, with some small lenders starting at 3.11%. The Big 4 are starting at 3.35% with their basic no frills loans.

Fixed Rates from some of these lenders start at 2.94% locked in for 2 or 3 years (owner/occupied, <60% LVR, P&I Repayments).

Looking into one’s crystal ball or reading tea leaves to foresee if the world trade and financial system can navigate through the current minefields without blowing up. The Australian economy was very “subdued” in the June quarter, but the election result, two cuts to interest rates, some relaxing of loan servicing rates and the govt working with the banks to implement sensible Royal Commission recommendations has given the property markets of Sydney and Melbourne a much needed shot of confidence. After a slow first few weeks of the Spring selling season with limited stock, the Spring market is showing solid auction results with prices achieved making up for recent losses. A confident Sydney and Melbourne property market should help the economy getting back onto its feet without more drastic measures. Then interest rates should hold with further cuts held in reserve.

Now might be a good time to lock in a lower rate for a short term if you are currently paying in the high 3% to 4% variable range.

All bets are off if the US/China trade war really gets out of hand, the UK gets further Brexit paralysis, the derivative markets hit the rocks, US/Iran start slugging it out etc, etc.