Fixed Rates Set to Rise - Predicted by RateCity
RateCity research found more than 60% of new fixed rate mortgages expected to rise
Sydney, Australia, August 12, 2009 --(PR.com)-- New research by Australia’s leading financial services website RateCity (www.RateCity.com.au) has found that 60 percent of new fixed rate home loans in Australia is expected to rise in the next week.
The research found that most fixed home loans are now up for review, because they were last re-adjusted in June 2009.
Damian Smith, RateCity’s CEO, said that consumers shouldn’t panic over the expected rate rise, but should be using the opportunity to shop around for the best rates.
“If you have an existing fixed rate loan there is no need to panic, because this is only a rate adjustment for new fixed loans,” he said.
Market leaders Westpac, St George and bankwest have adjusted their rates by up to 0.45 percent last week, setting a new benchmark for three to five-year fixed rates to 7 percent and above according to the RateCity research.
The market rate for a three-year fixed home loan is currently 6.89 percent, a four-year fixed market rate is 7.24 percent and it is 7.59 percent for five years.
“This means that most of the current fixed rates are now out of date so you must be careful when choosing a home loan,” said Mr Smith.
“If you’ve just applied for a home loan and are waiting for settlement or are rolling over a loan from refinancing may be caught with a higher fixed rate.”
However, Mr Smith said there is a positive aspect to the expected rises.
“It is not all bad news. Confidence is returning to the market, property prices appear to be stable and the Reserve Bank has kept the cash rate unchanged at 3 percent for the past six months, which means lenders are becoming more comfortable and beginning to advertise more aggressively,” he said.
“By doing your research and comparing home loans at RateCity, you could save yourself a lot of money.”
RateCity’s top variable rates today (for a $250K loan, as at August 10, 2009)
Company home loan advertised rate
State Custodians Standard Variable 4.79%
Reduce Home Loans Discount Variable Prof 4.79%
bankwest RateTracker Ultra 4.87%
mecu First Home Buyers Loan 4.99%
RAMS Basic 4.99%
And the four big bank’s lowest variable rates (for a $250K loan, as at August 10, 2009)
nab Tailor Choice Pkg $250k+ 5.04%
Commonwealth Bank 3yr Special Rate Saver 5.06%
ANZ Simplicity Plus 5.11%
Westpac Flexi First Option 5.11%
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About RateCity
Launched in December 2006, RateCity.com.au is the website where Australians can easily find, compare and apply for over 13,000 financial products from over 250 institutions. It spells the end of travelling from website to website and the beginning of discovering the very best value product for you. Our job is to take the hassle out of finding the right financial product - saving our users both money and time.
RateCity.com.au is a private company with an AFS Licence (AFSL: 316 710), powered by CANSTAR CANNEX, in partnership with ninemsn.
Disclaimer
To the extent that any RateCity Pty Limited data, ratings or commentary constitutes general advice, this advice has been prepared by RateCity Pty Limited ABN 21 122 743 542 AFSL 316710 and does not take into account your individual investment objectives, financial circumstances or needs. Information provided on and available from this site does not constitute financial, taxation or other professional advice and should not be relied upon as such. RateCity Pty Limited recommends that, before you make any financial decision, you seek professional advice from a suitably qualified adviser.
Product Disclosure Statement relating to the product should also be obtained and considered before any decision about whether to acquire the product.
Please refer to RateCity's FSG on its website for more information.
The research found that most fixed home loans are now up for review, because they were last re-adjusted in June 2009.
Damian Smith, RateCity’s CEO, said that consumers shouldn’t panic over the expected rate rise, but should be using the opportunity to shop around for the best rates.
“If you have an existing fixed rate loan there is no need to panic, because this is only a rate adjustment for new fixed loans,” he said.
Market leaders Westpac, St George and bankwest have adjusted their rates by up to 0.45 percent last week, setting a new benchmark for three to five-year fixed rates to 7 percent and above according to the RateCity research.
The market rate for a three-year fixed home loan is currently 6.89 percent, a four-year fixed market rate is 7.24 percent and it is 7.59 percent for five years.
“This means that most of the current fixed rates are now out of date so you must be careful when choosing a home loan,” said Mr Smith.
“If you’ve just applied for a home loan and are waiting for settlement or are rolling over a loan from refinancing may be caught with a higher fixed rate.”
However, Mr Smith said there is a positive aspect to the expected rises.
“It is not all bad news. Confidence is returning to the market, property prices appear to be stable and the Reserve Bank has kept the cash rate unchanged at 3 percent for the past six months, which means lenders are becoming more comfortable and beginning to advertise more aggressively,” he said.
“By doing your research and comparing home loans at RateCity, you could save yourself a lot of money.”
RateCity’s top variable rates today (for a $250K loan, as at August 10, 2009)
Company home loan advertised rate
State Custodians Standard Variable 4.79%
Reduce Home Loans Discount Variable Prof 4.79%
bankwest RateTracker Ultra 4.87%
mecu First Home Buyers Loan 4.99%
RAMS Basic 4.99%
And the four big bank’s lowest variable rates (for a $250K loan, as at August 10, 2009)
nab Tailor Choice Pkg $250k+ 5.04%
Commonwealth Bank 3yr Special Rate Saver 5.06%
ANZ Simplicity Plus 5.11%
Westpac Flexi First Option 5.11%
###
About RateCity
Launched in December 2006, RateCity.com.au is the website where Australians can easily find, compare and apply for over 13,000 financial products from over 250 institutions. It spells the end of travelling from website to website and the beginning of discovering the very best value product for you. Our job is to take the hassle out of finding the right financial product - saving our users both money and time.
RateCity.com.au is a private company with an AFS Licence (AFSL: 316 710), powered by CANSTAR CANNEX, in partnership with ninemsn.
Disclaimer
To the extent that any RateCity Pty Limited data, ratings or commentary constitutes general advice, this advice has been prepared by RateCity Pty Limited ABN 21 122 743 542 AFSL 316710 and does not take into account your individual investment objectives, financial circumstances or needs. Information provided on and available from this site does not constitute financial, taxation or other professional advice and should not be relied upon as such. RateCity Pty Limited recommends that, before you make any financial decision, you seek professional advice from a suitably qualified adviser.
Product Disclosure Statement relating to the product should also be obtained and considered before any decision about whether to acquire the product.
Please refer to RateCity's FSG on its website for more information.
Contact
RateCity.com.au
Michelle Hutchison
+61 2 8917 8005
www.ratecity.com.au
Michelle Hutchison
+61 2 8917 8005
www.ratecity.com.au
Contact
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