What you need to do to benefit from low interest rates as a homeowner
Industry experts are urging homeowners with high mortgage payments to see how much they could save by switching to an ultra-low fixed-term home loan before lenders take the unprecedented low rates off the market, which could be as early as November 2022*.
These rates around 2% and under won’t stick around for long, so it’s more important than ever to take advantage of low fixed interest rates on your home loan by refinancing.
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Australians who recently refinanced have been enjoying low home loan interest rates since mid-2020, but experts predict that is set to end in the next 18 months, so refinancing your home loan now has never looked better
Australia’s biggest Bank, Commonwealth Bank, says the official cash rate could hit 1.25% by September 2023.
According to the ABC, that would mean an increase in the typical variable home loan interest rate from 3.10% to 4.25% — or a $324 per month increase in home loan repayments**.
Time is running out to refinance, as many banks and lenders have already started increasing a number of fixed term rate products in anticipation of the RBA cash rate rise.
“Essentially, anybody looking to refinance should do it ASAP, while rates are low,” says Matt Gatt, General Manager at Home Loans Australia. “New buyers may want to get their pre-approvals sorted quickly because the market may move sooner than expected.”
Refinance your home loan with a low rate while you still can
Fortunately, Home Loans Australia currently has lenders that are still offering fixed interest rates from as low as 1.89% (2.94% comparison rate§).
That means homeowners may only have a short window to refinance to an ultra-low rate fixed term home loan to lock in those savings.
Our specialists at Home Loans Australia compare more than 40 lenders to find a refinancing rate that may enable you to pay off your mortgage quicker.
Let our experts do the hard work so you can beat the predicted interest rate hike and find a lower cost fixed-term home loan.
Get Started Now:
Step 1: Select your State below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.
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This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.
*Commbank Newsroom, RBA rate hike likely in November 2022, 23 June 2021.
**Based on a $500,000 owner-occupied mortgage at 3.10%. Source: ABC, Commonwealth Bank warns interest rates will rise next year pushing up mortgage costs, 23 June 2021.
§Based on a loan amount of $150,000 over 25 years