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Mortgage rates lowest for borrowers who fix
Two-year fixed mortgage rates are currently offering the lowest average rates, an analysis of home loans data has found.
At the end of February, the average of all the owner-occupied two-year fixed loans listed on RateCity was 4.16 per cent.
That was lower than the averages of the other fixed-rate options and also variable-rate mortgages.
The averages were:
- Two-year fixed = 4.16 per cent
- One-year fixed = 4.20 per cent
- Three-year fixed = 4.24 per cent
- Variable = 4.46 per cent
- Four-year fixed = 4.60 per cent
- Five-year fixed = 4.66 per cent
It was a similar story for investment mortgages, where two-year fixed home loans were again cheaper than all the other options.
The averages were:
- Two-year fixed = 4.46 per cent
- One-year fixed = 4.51 per cent
- Three-year fixed = 4.54 per cent
- Four-year fixed = 4.86 per cent
- Variable = 4.91 per cent
- Five-year fixed = 4.96 per cent
Mortgage interest rates getting dearer
Looking back over the previous year, the data shows that two-year fixed-rate mortgages had lowest average rates for every month between February 2017 and February 2018.
That was the case for both owner-occupied and investment home loans.
The data also shows that all categories of home loans became more expensive over the year.
Owner-occupied home loan rates
| Date | 1-year fixed | 2-year fixed | 3-year fixed | 4-year fixed | 5-year fixed | Variable |
|---|---|---|---|---|---|---|
| February 2017 | 4.16% | 4.10% | 4.14% | 4.50% | 4.59% | 4.35% |
| February 2018 | 4.20% | 4.16% | 4.24% | 4.60% | 4.66% | 4.46% |
| Difference | +4 points | +6 points | +10 points | +10 points | +7 points | +11 points |
Investment home loan rates
| Date | 1-year fixed | 2-year fixed | 3-year fixed | 4-year fixed | 5-year fixed | Variable |
|---|---|---|---|---|---|---|
| February 2017 | 4.34% | 4.28% | 4.32% | 4.68% | 4.74% | 4.62% |
| February 2018 | 4.51% | 4.46% | 4.54% | 4.86% | 4.96% | 4.91% |
| Difference | +17 points | +18 points | +22 points | +18 points | +22 points | +29 points |
Disclaimer
This article is over two years old, last updated on March 11, 2018. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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Product database updated 13 Nov, 2024
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