Following the Reserve Bank of Australia’s decision to reduce the official cash rate to 1.75 per cent, Aussie Home Loans has cut its fixed rate home loans for Aussie Select to their lowest levels ever.
Aussie Select’s Owner Occupied two year fixed rate will be cut by 0.29 per cent to start from 3.89 per cent (comparison rate 4.03 per cent). The three year fixed rate will now start from 3.99 per cent (comparison rate 4.04 per cent), with both effective from 17 May 2016^.
Chief Executive Officer of Aussie, Mr James Symond, said “Fixed rates are lower than I’ve ever seen them and I wouldn’t be surprised to see more home owners taking advantage of the incredibly low fixed rates available in the market if they intend to stay in their properties for the fixed term,” he said.
In addition, Aussie Optimizer variable rates will be reduced by 0.25 per cent for owner occupiers and by 0.20 per cent for investors, with the reductions effective 25 May 2016 for existing borrowers and 17 May 2016 for new customers*.
Aussie Select variable rates will be reduced by 0.19 per cent for existing and new customers, effective 25 May 2016.
Mr Symond said the rate cuts should not be seen as an opportunity for borrowers to take on more debt.
“The rate cut should not cause property owners to load up on their mortgages, but rather take advantage of the rate cuts by getting ahead on their mortgage repayments where possible, or reviewing their loan for free with an accredited mortgage broker to ensure that it’s still competitive.
“With rates at new historic lows, now is the right time to look at whether you can save money on your mortgage by refinancing or asking your bank or lender for a better deal,” he added.
Aussie Select and Aussie Optimizer are available through Aussie Mortgage Brokers, with Aussie Select also available from mortgage brokers who operate as part of National Mortgage Brokers.
To find out more visit www.aussie.com.au or call 1300 44 55 66.
Click here for full details including rate tables.