Good news for borrowers regarding fixed rates at the RBA Monthly Board Meeting!
At its monthly board meeting, the RBA elected to keep the cash rate at 0.25%. This was entirely expected and it’s highly likely the cash rate will remain at 0.25% for quite some time.
However, an announcement that did stand out from the normal observations of the state of the economy was one regarding the RBA’s Term Funding Facility. This was a program that was put in place by the RBA earlier in the year which allowed the Banks to access funding on a three year fixed term at 0.25%. Each Bank was allowed to access up to 2% of their outstanding credit facilities at this cheap rate.
This had a flow on effect for borrowers as seen by the historically low, one, two and three year fixed rates available as low as 2.19%.
Due to end at the end of September, this month the RBA has announced that they are making the Term Funding Facility available, on the same terms and at the same 0.25% rate for an extended period until the end of June 2021.
This will come as welcome news for borrowers, particularly those who are willing to consider a fixed interest rate home loan.
Of course, there are pro’s and con’s with a fixed rate home loan, so we recommend seeking advice from an experienced Mortgage Broker before committing to, or choosing a fixed rate home loan.
If you would like to look at fixed rates as an option, give us a call on 8300 8300 or have a chat with your own Mortgage Broker.