Direct has reduced its three-year fixed interest rate, it has been announced.
The non-major bank has announced that its three-year fixed rate (including a O.10% p.a discount) for owner occupiers with an Orange Advantage Home Loan has been reduced to 3.98% p.a (comparative rate 4.66% p.a). The 0.10% discount rate applies to both new customers and existing owner-occupier Orange Advantage customers who apply to switch, split or increase a portion of their existing Orange Advantage home loan to a fixed rate loan. The new three-year fixed rate for non-Orange Advantage owner-occupier customers is 4.08% p.a. (comparison rate 4.69% p.a.).
“The interest rate cycle is at a relatively low point,” John Arnott
, Executive Director Customer, told Australian Broker
, “making it a good time for home buyers to fix or partially fix their mortgages."
“We are not expecting the RBA
to move the cash rate anytime soon but a partially fixed and variable home loan can deliver both peace of mind and flexibility with repayments,” he added.
Direct’s portfolio, 29% of customers have fixed or partially fixed home loans.
“Fixing or partially fixing home loans is a good way of adding certainty to the level of repayment,” said Arnott. “Customers can have the best of both worlds by partially fixing their home loan and keeping some variable for flexibility.”