Category Archives: Home Loan Fixed Interest Rates

Movements in Home Loan Fixed Interest Rates

ASB raises long dated home loan fixed interest rates

In one week ASB’s 5 year fixed home loan interest rate has gone from 5.95% to 6.50%. This shows the vagaries of making interest rate predictions.

The 5 year swap rate, the cost to the Bank of borrowing funds for 5 years currently sits at 4.10% (the 10 year average by the way is 7%).

A lovely margin of 2.40%. 

This is an example, as confirmed by the recent reporting season in Australia, that the major banks here have been increasing their margins.


Home loan Interest Rates Succumbing

With some economists picking a cut in the official cash rate on the 4th of December of as much as 1%, home loan interest rates have started to come down in anticipation.

Westpac lead the way yesterday with their 6 month fixed interest rate now at 7.65%.

ASB is following tomorrow with a 6 month fixed interest rate of 7.35%.

great news for mortgage holders :-0