Fixed Interest Rates Are Dropping

The Reserve Bank of Australia meets in the first week of September to assess whether interest rates remain on hold or increase. Many economists are predicting that rates are likely to remain on hold.

While the variable mortgage rates are likely to rise or remain on hold, fixed rate loans are currently falling. Some of the deals you can find out there are the moment are as follows;

  • 2 Year Fixed Rate – 6.79%
  • 3 year Fixed Rate – 6.75%
  • 5 Year Fixed Rate – 7.29%
  • 10 Year Fixed Rate – 8.09%

Note that these rates are only valid for September 1st 2010. Please go to Smart Search Finance to find you the latest fixed and variable rate discounts.

Warning About Fixed Rates

It is important to discuss with your credit provider whether fixed rates are suitable for your lending needs. You will also need to consider that fixed rate loans may have the following restrictions;

  • Most fixed loans do not allow unlimited repayments
  • Extra payments beyond the annual limit are likely to incur a fee
  • Break fees may apply if you exit the loan before the contract date
  • Offset accounts and redraw may not be available
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