Insightful Update on Interest Rates and Loan Options - Peasy

Insightful Update on Interest Rates and Loan Options

After the RBA decided to hold rates steady on Tuesday, I’ve now recorded the latest “Should I Fix?” video to see what the numbers look like if you were to fix or stick with a variable rate loan. You can watch the video here and I’ve also included a quick summary below;

  • Fixed rates are now being reduced by most lenders (you can now find fixed rates lower than variable rates), but the outlook on variable rates coming down is looking more certain as well.
  • If the variable rate forecasts are right, the cheapest 1 year fixed rate is only a few hundred more expensive than the cheapest variable rates.
  • 2 Years and beyond are still looking much more expensive compared with variable rates due to a few rate reductions being factored in, although there are quite a few rates lower than 6% available at the moment.

It’s important to note that these are purely based on forecasts which can be just as reliable as predicting the weather, and the pros and cons of each product remain the same.

Hopefully, this will give you a little more clarity as to what you should do with your loan, although if ever you’re unsure, feel free to send through your questions and we’ll be happy to help ????

Article written by Peasy
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