Time to lock in your mortgage

In yesterday’s Australian Financial Review, it was reported that NAB had cut its 4 year fixed rate. Today Westpac cut it’s 3 year fixed rates to 5.14%. This tells me that interest rates are likely to remain stable for at least the next 3-6 months. AFG, our aggregator advised that the reason for this was to compete more aggressively with smaller lenders who accounted for 38% of fixed rate loans sold through AFG in December, up 14% from Feb 2013. With cuts in fixed rates I would urge you to think about locking in if you are currently on variable rates and you are not thinking about selling your property over the next 1-5 years.