Fixed home loans have never been cheaper, which raises the question of whether now is the time to think about locking in, or could they get cheaper still? The Business asked the experts what they think.
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Major lenders have hiked fixed five-year mortgage rates over the past few weeks in response to rising government bond yields, but new home buyers willing to take a gamble may be tempted by another option: declining borrowing costs for variable mortgages.
All of the biggest banks have widened the discounts offered on their variable-rate mortgages in recent days by between 10 and 20 basis points, putting variable rates in the range of about 1.5 per cent, according to Robert McLister, who tracks rates as mortgage editor at RATESDOTCA. (There are 100 basis points in a percentage point.)