According to the site’s database, the average three-year fixed rate is now 5.47% – the lowest level on record. The average standard variable rate is currently 0.42 percentage points higher at 5.89%.
Several lenders have also cut variable home loan rates out-of-cycle this year, with the latest from State Custodians, dropping its Peak Performance Offset home loan to 4.99% on March 1. This is the lowest variable home loan rate in RateCity’s database, excluding introductory rates.
Hutchison says borrowers should do their homework before deciding on a home loan, because of the ‘significant’ difference between what lenders offer.
“While it’s great to see lenders becoming more competitive with their home loan rates, it’s important for borrowers to consider other factors when comparing home loans because fixed home loans are generally less flexible than variable home loans.”