BoQ joins fixed home loan rate plunge

Fixed rate home loans priced below 4% as competition heats up

Bank of Queensland (BoQ) has become the latest lender to slash fixed home loan rates, with its four-year fixed rate now priced at 3.99% per annum (p.a). This follows similar moves by ANZ, Westpac, and Commonwealth Bank in recent weeks, as competition in the fixed rate home loan market heats up.

Why are fixed home loan rates falling?

There are a number of factors driving the recent fall in fixed home loan rates, including:

The Reserve Bank of Australia (RBA) has kept the official cash rate on hold at a record low of 0.1% since November 2020. This has made it cheaper for banks to borrow money, which has in turn allowed them to pass on lower rates to borrowers.

Increased competition in the fixed rate home loan market. With more and more lenders offering competitive fixed rate deals, banks are having to reduce their rates in order to attract new customers.

A desire to lock in low rates. Many borrowers are choosing to fix their home loan rates in order to protect themselves from future interest rate rises. This is especially appealing to borrowers who are concerned about the potential for inflation to push up interest rates in the future.

What does this mean for borrowers?

The recent fall in fixed home loan rates is good news for borrowers, as it means they can now secure a low interest rate on their home loan. This can save them money on their monthly repayments and help them to pay off their loan faster.

If you are considering taking out a fixed rate home loan, it is important to compare rates from a number of different lenders in order to get the best deal. You should also consider your individual financial circumstances and needs before making a decision.