Cheaper fixed home loans; really?

Borrowers can expect even cheaper fixed home loans after the Reserve Bank mentioned the possibility of a cut to its key interest rate.

As expected, the central bank kept the official cash rate (OCR) on hold at 3.5 per cent.

However, it said its next move could be "either up or down", sparking a strong reaction from financial markets.

Almost three quarters of borrowers are now locked into fixed-term mortgage rates, a significant reversal from previous years. Floating rates are much more closely tied to the OCR, and tend to move almost in lockstep with the Reserve Bank's decisions.

The question of whether to fix or float generally comes down to your individual circumstances. However, short term rates ranging from 6 months to two years are looking attractive at present.

Talk to us and we will make sure that you are not only on the best rate on the market but we will also make sure that your loans are structured in a way that they will be paid off quicker and provide tax benefits.