It pays to shop around for the best rate you can get!
Business Insider reports a typical owner occupier borrower has a home loan rate of 4.30 per cent. (That was the average of all the principal-and-interest variable rates listed on RateCity at the end of May.)
By contrast, the lowest P&I variable rate on RateCity, from Reduce Home Loans, has an interest rate of just 3.09 per cent (comparison rate also 3.09 per cent).
Check out how much you could save by switching from the big banks’ average Standard Variable Rate of 4.30% to the Reduce Home Loans Low Rider Variable.
Fix now while you can?
Economists are tipping more rate cuts as the government attempts to help stimulate the Australian economy.
Scott Pape from the Barefoot Investor advises borrowers will be better off on a variable rate.
“Don’t get stuck on a fixed rate”, Pape claims.
There are many lenders offering far lower rates than the banks, Pape found Reduce Home Loans’ Low Rider Variable to be the lowest in the market at the time.
“According to my fiercely independent research, the cheapest variable mortgage is Reduce Home Loans at 3.09 per cent”, Pape said.
While fixing your rate now would offer stable repayments over the fixed period, future rate cuts may prove variable rates to be the better option as more cuts are predicted for 2019.