A summary of the current fixed rate market is below (noting that there has been six months of upward movement in this marketplace as the banks change the price of fixed rates differently to variable rates).
Market rates for fixed rate loans as at 07/04/2022 (Loan amount assumed $1 million at 80% loan to valuation ratio):
Owner Occupied, Principle & Interest
– 1 year fixed: 2.54%
– 2 years fixed: 2.79%
– 3 years fixed: 3.24%
– 4 years fixed: 3.44%
– 5 years fixed: 3.59%
Investment, Principle & Interest
– 1 year fixed: 2.84%
– 2 years fixed: 2.99%
– 3 years fixed: 3.44%
– 4 years fixed: 3.64%
– 5 years fixed: 3.74%
Investment, Interest Only
– 1 year fixed: 2.89%
– 2 years fixed: 3.09%
– 3 years fixed: 3.64%
– 4 years fixed: 3.74%
– 5 years fixed: 3.84%
It is important to select rate lock when fixed rates are moving regularly. The below graph demonstrates fixed rates have move sharply upwards in the last 6 months. Rate lock stops the rate from movement between lodgment of the application and before settlement (usually for a max of 90 days). The cost is generally .15% of the fixed amount (but at some lenders this can be cheaper).
If you would like to refinance, I’m here to help. Tom.
Written by Tom Morison
