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ISCOVER
Staff Reporter
One of Australia’s largest credit unions has thrown down the gauntlet to the banks, with the lender launching a “very competitive” three year fixed rate.
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Yesterday Credit Union Australia launched a 5.30 per cent three year fixed rate home loan.
CUA’s latest National Mortgage Survey: Expectations and Intentions found that Australians are divided on the outlook for rates in 2013, with 38 per cent believing they will increase, 37 per cent saying they will decrease, and 26 per cent saying they will remain the same.
CUA’s general manager, products and marketing Jason Murray said the lender’s Mortgage Survey reveals that Australians are polarised about the likely direction of interest rates in 2013.
“This reflects uncertainty in the minds of Australian consumers right now, further bolstered by the RBA’s decision to hold rates this week,” he said.
“38 per cent of Australians believe rates will go up this year, so fixing could be a wise decision to provide clarity on mortgage repayments.”
Certainty of mortgage repayments is a key driver prompting Australians to fix their mortgage rate, with over 50 per cent of respondents citing this as a reason they would move, or consider moving, from a variable to fixed rate.
A further 58 per cent of those under 30 plan to fix their home loan rate in the future.
"The official cash rate has reached the same low levels that were seen in the peak of the GFC. However, economists are seeing signs of the global economy picking up, which suggests that rates may not go much lower, so now could be an ideal time to lock in your mortgage rate,” Mr Murray said.
