Mortgage brokers are reporting a spike in borrowers switching to fixed-rate loans. With interest rates being so low, and possible further cuts to come, borrowers are looking to snap up the low rates on their loans for fixed terms while they can get it.
The Bureau of Statistics reported around 20% of all new loans issued in April were at a fixed rate.
Economists are tipping the cash rate of 2.75% to fall further as Australia’s mining boom begins to stall, and are not expecting any rises in official rates over the next 18 months.
Because the market is expecting cash rates to continue to fall, three and five-year fixed mortgage rates are becoming a very attractive option.
