Joust CEO, Carl Hammerschmidt speaks to channel 9 about what Joust are seeing for Australian consumers on the Joust platform
“We've seen over the last 12 months that the number of customers specifically seeking a fixed rate mortgage is almost halved.”
Speaker 1: A string of big banks have cut their fixed home loan rates in a surprise move. It's a signed the RBA's tough measures are starting to slow the economy with some predicting the official cash rate will start falling next year.
Eddy Meyer: Like many, Shelley Fitzgerald ensured herself against rising interest rates by fixing her loan last year.
Shelley Fitzgerald: I think I'll just look at that next year, and at least this way I know exactly what I owe in terms of repayments until next year.
Eddy Meyer: Online home loan marketplace, Joust, sees variable loans making a comeback as fixed rates have risen sharply.
Carl Hammerschmidt: We've seen over the last 12 months that the number of customers specifically seeking a fixed rate mortgage is almost halved.
Eddy Meyer: Eight lenders on the RateCity database have cut at least one fixed rate in the past week. Westpac, CBA, First Mac, loans.com.au, Macquarie Bank, Suncorp, Homestar Finance Investment Loans, and Athena Home Loans.
Shane Oliver: Because the cost of funding for fixed mortgages by the banks has declined.
Eddy meyer: Millions of borrowers were tempted by ultra low fixed rates, most locking in at or below 2%. Now, the majority of those loans will expire mid to late next year, exposing them to a new loan rate that could well be double, even triple what they're paying now. The big gamble, do they fix again or roll the dice on the variable rate? Right now, these are the best fixed rates for those who want certainty. The Capricornian's one year fixed rate is 3.55%. It also has the best two year fixed deal at 3.99%. Westpac's four year fixed rate is 4.89%. Of those who've already passed on the most recent rate rise, loans.com.au has the best variable rate, 3.1%. After four recent official rate rises some economists are now predicting rate cuts next year. The official interest rate is now sitting at 1.85%. Of the big banks, CBA has the most optimistic outlook, believing that rate will be 2.6% by November before dropping to 2.1% by November next year. Eddy Meyer.