April’s 10 cheapest fixed rate home loans
Now could be the best time to fix your home loan interest rate as bank funding costs head skyward.
Fixed rate demand has been falling out of fashion of late, but now may be the savvy time to lock in your home loan interest rate.
A report from the Sydney Morning Herald has flagged rising bank funding costs that could see variable rates pushed skyward in the months to come.
While variable rates remain near record lows, the SMH report pointed to a rise in the spread between the three-month Bank Bill Swap Rate (BBSW) and the overnight funds swap rate. According to Macquarie analyst, Victor German, this could see home loan interest rates on the rise.
"Should costs remain elevated for a long period, we believe that banks are likely to raise their mortgage rates to offset it," German told the SMH.
Should borrowing rates be heading up, it could be the perfect time to lock in a competitive fixed rate. We've scoured our database to find April's 10 cheapest fixed rate home loans available through finder.com.au. To ensure the loans we chose apply to the average borrower, we used the following criteria:
- A minimum loan amount no greater than $250,000.
- A maximum loan amount of $500,000 or higher.
- A three-year fixed interest rate.
You can check out the best fixed rates on offer through finder.com.au in the table below. Weigh up your options and decide if it's time to lock in your rate.
*Our cheapest fixed rate home loans round-up is a monthly regular article that features the cheapest loans in finder's database. The rates and other information in this page are correct at the time of publication and are subject to change. There may be cheaper loans on the market than the ones listed here. The home loans in the table above were taken from finder.com.au's database on 4 April March.