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ISCOVER
Staff Reporter
The gap between fixed rates and standard variable rates continues to grow with Aussie slashing its 3-year fixed rate to 6.29 per cent p.a.
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Aussie's founder and executive chairman John Symond said the time was right for home owners to consider locking in at least part of their mortgage.
"Over the years I have advised people to stick with variable and pay off as much as you can in order to pay the loan off faster," he said.
"However, with these competitive rates, it makes sense to lock away part of your loan as an insurance policy against global uncertainties.”
Mr Symond said there was speculation the RBA would drop its rates at its next meeting on Melbourne Cup day, but it would have to keep dropping consistently each month to match Aussie's fixed rate.
"The cost of funding is quite high and while the current round of aggressive fixed rates may be good news for consumers, they may not last forever so it pays to look at your home loan now," he said.
