From the AFR:
Australia’s second biggest home lender, Westpac Banking Corp, announced on Thursday that the rate to fix home loans for two years had been lowered to 4.99 per cent.
It is the lowest fixed rate offered by Westpac since April 2009 and follows the Reserve Bank of Australia’s decision on Tuesday to keep the official cash rate unchanged at 3 per cent.
Fixed-rate mortgages are priced on expectations of future interest rate changes by the RBA and move ahead of variable rates.
The bank is taking Bill Evans’ forecast for a March cut very seriously. But ho hum. If Bob Gregory is right, Westpac will be offering 3.99% next year.
Still 3 year fixed mortgages are already below GFC lows, according to Bloomie:
And that’s low enough for some folks to bite:
Fixed rate small business loans are also at record lows according to Bloomie:
That’s if you can get one…
