MEDIA RELEASE
Borrowers advised to fix to avoid variable rate hikes
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Average borrower could save $5,000 over three years by fixing
Gap widening between fixed and variable rates with interest rates on
fixed loans lower across all terms
Experts predict more out of cycle rate hikes despite RBA holding on
record low cash rate
Tuesday 5 April, 2016: Mozo.com.au says home borrowers should consider fixing
loans with experts predicting more out of cycle rate hikes are likely, despite the RBA
holding on record low rates.
The comparison site says 24 lenders have cut fixed home loan rates since the start
of 2016, with 5 lenders now offering 3 year home loan rates below 4%.
The most competitive fixed rate in the Mozo database is 3.89% compared with the
average variable rata of 4.72%.
“Borrowers may be happy the RBA has held on record low interest rates, however
we think there is a strong possibility that increased pressures on funding costs will
see lenders hike variable rates in coming months,” says Mozo Director Kirsty
Lamont.
“This is a great time to consider fixing, with the gap between the average fixed and
variable rate widening over the last 6 months so that average fixed rates across all
terms are now lower than the average variable rate.”
Mozo says refinancing a $300,000 loan from the average variable rate of 4.72% to
the lowest 3 year fixed rate of 3.89% would save $5,040 in interest over the 3 year
term.
Homeowners can compare 474 home loans online using Mozo’s home loan
comparison tool at https://mozo.com.au/home-loans.
Top5fixedhomeloanrates
3yearfixed
Provider
Product
rate
Illawarra
FixedHomeLoan
3.89%
CreditUnion
SCU
MyLifeHomeLoan(Package)
3.95%
Bankof
DiscountFixedRate
3.99%
Queensland
Special3YearFixedHomeLoan(HomePackage
Suncorp
3.99%
Plus)
UBank
UHomeLoan
3.99%
Source: Source: Mozo.com.au as at 5 April 2016
-ENDS-
MEDIA RELEASE
For data or interviews contact:
Angela Cartwright or Kirsty Timsans at Mozo
PH: 02 9037 4375
E: [email protected] or [email protected]
About Mozo.com.au
Mozo compares 1,800 products from 200 banking, insurance and energy providers to
help over 300,000 Australians find a better deal each month via its award winning
comparison tools and calculators. Mozo is proud to partner with some of the
country's biggest online publishers, making it one of the most visited comparison
sites in Australia.