Australian Lenders Cut Home Loan Fixed Rates

Australian Interest Rates DOWN but fewer people interested.

News reports are showing that over 40 lenders (including the major banks) have dropped their interest rates on many fixed home loans since the beginning of 2019.

Some are down to as low as 3.49% for a three year term.

However, instead of the numbers of fixed rate loans rising, the proportion actually dropped by 1.4% in March 2019, to just 21% of all loans written.

Mortgage Choice chief executive Susan Mitchell said; “There is a great deal of uncertainty surrounding the housing market at present, which could be weighing against borrowers’ decisions to commit to a fixed term.

Buyers may be thinking that the RBA may cut interest rates again, and cause rates to drop further… BUT, are they right?

These recent rate drops appear to have already priced in a 25 basis point cut  (0.25%) by the RBA later this year. If that does not happen, will these fixed rates RISE again?

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Do you lock in NOW at 3.49% for 3 years, or wait and see if it goes down further, or up again?

To see the mortgage from the past , this is a good graph from

Can rates really go much lower, to rates not seen in the last 60 years?

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