Fixed rate home loans are at their lowest ever — but they come with a catch

Fixed rate home loans are at their lowest ever — but they come with a catch By David Taylor The banks want to lock you in as a customer now for as long as they can.(ABC News: Grant Wignall) Interest rates in Australia have plumbed new depths since the Reserve Bank's monetary policy announcement on Melbourne Cup Day,

It's taken several weeks, but following a number of extraordinary policy measures by the RBA (including a formal adoption of Quantitative Easing), at least one bank has taken the decision to offer a three-year fixed home loan rate of 1.89 per cent.

That's low. In fact, according to interest rate comparison site, Mozo, it's the lowest commercial fixed interest rate (with an 80 per cent Loan to Value Ratio or LVR) the country has ever seen.

Fixed rates are dropping to all-time lows because the banks are desperate for your money. So far the evidence shows they're…

Read more
  • 0