We have reported several times over the past 12 months that interest rates have dropped or stayed the same, each time trying to provide Bacchus Marsh real estate owners with tips on how to best take advantage of record low interest rates. We’ve suggested that you use the low interest rates to pay off more than your minimum monthly repayment, creating greater equity in your loan; use it as a chance to make some real savings; or refinance with a loan that better meets your needs.
While the RBA did not increase interest rates at their meeting on Tuesday, we’ve noticed an increase elsewhere that’s worth checking out. Fixed interest rates have been incredibly low for a few months now, with some lenders offering fixed rates below 5%, and many keeping their fixed rates lower than the variable. However, it seems times are a changing. For the first time in a long time, banks have made a move in the upwards direction, with 3 of the 5 big banks increasing their ‘3 year fixed’ rates.
This isn’t necessarily the start of a significant new trend upwards, but it’s certainly worth keeping a close eye on. If you’re sitting on a variable home loan, but are keen to get things fixed before rates begin to head northerly, now might just be the perfect time to do it. We advise all Bacchus Marsh home owners to chat to a Bacchus Marsh financial adviser or home loan expert to discuss your options. You may already have the best home loan for you, but if not, why waste any more time?