- As of this October, the lowest variable rate home loans in the market are around 3.95% – 3.98%
- The lowest 3 year fixed is Bank of Queensland (3.99%)
Is your current home loan rate near any of the above? Here’s another fact: One-third of borrowers don’t know their current home loan interest rate. Others believe that rate differences are not significant, when even one point difference has a big impact on your payments.
How to calculate the impact interest rate rises have on your home loan
If you’re not on fixed, an interest rate rise, however small it might seem, will increase your monthly mortgage repayments.
How slight increases in your repays could future proof your mortgage against rate rises
Make sure you’re saving on what could be additional thousands dollars in interest and get the best possible rate. Home loans are currently low as the cash rate is also at its lowest level in this cycle. The current average rates continue to range between 4% and 4.5% on variable home loans, which makes it ideal to check with your bank to see if your loan rate is reflecting what’s going on in the market.
It is during these precious times that investors like to ride the market. One way you could take advantage of the situation is to make repayments at 2 to 3% per annum higher than your initial interest rate.