Fixed loan decline

Tuesday, 18 March, 2003 - 21:00

FIVE-YEAR fixed home loan interest rates are now falling below the standard variable rate. Five-year fixed interest rates can now be secured for as low as 6.25 per cent, according to Loans Cafe managing director Anne-Marie Syme.

“Five-year fixed rates are now well below most banks’ standard variable rate of 6.57 per cent. Three-year fixed rates have fallen even further and can be secured for as low as 5.99 per cent,” Ms Syme said.

“Fixed interest rates have fallen significantly over the past month because they are priced off wholesale market interest rates, or government bonds.

“Yields on bonds have been falling in recent times due to concerns over a war in the Middle East.”