Friday, April 24, 2009

Window of opportunity closing

The window of opportunity to secure a low fixed rate home loan could be closing with the major banks now moving to bump up fixed term rates. Effective this week, the four major Australian banks are offering three year rates ranging from a low of 5.49 percent to a high of 6.19 percent. Accross the four banks this represents a rise of between 20 to 40 basis points.
One of the four also took the opportunity to increase its 5 year rate by 45 basis points to 6.84 per cent.

Despite expectations that the cash rate will fall further this year the rising cost of funds has once again been blamed for the banks' decisions to claw back shrinking home loan margins.
While not as attractive as the recent 4.99 percent we offered to customers, a three year rate of 5.49 percent is still reasonably attractive in the context of historical rate levels.

No comments: