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ISCOVER
Staff Reporter
Borrowers who are looking to fix their interest rate have missed the boat, 1300HomeLoan managing director John Kolenda has claimed.
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Mr Kolenda said the time for fixing has now all but passed, as the best time to lock in was last month.
“Last month was probably the best time to consider fixing as generally fixed rates bottom out three to six months before variable rates,” he said.
“The best fixed rates in the two and three year products, such as Citibank and ANZ, have already come up by 20 to 30 basis points since then.”
But while the best fixed rate prices may now be behind us, Mr Kolenda said there are still some good opportunities.
“It is probably still a very good time to consider fixing. Borrowers who are hesitant about fixing their entire mortgage can look at fixing part of their loan to get certainty for a period whilst also having flexibility with a variable rate,” Mr Kolenda said.
“The out-of-cycle mortgage rate increases following the RBA’s hold decision last month are a good example of how instability in the global financial sector is.”
