The fixed-rate loan is for owner occupiers making principal and interest (P&I) repayments with a loan-to-value ratio (LVR) up to 90%.
The maximum loan amount is $1 million.
The brand's 70% LVR variable-rate home loan has also remained at 4.85% p.a. (4.87% p.a. comparison rate*).
Loans.com.au Managing Director Marie Mortimer, pictured below, said families are facing a cost-of-living crunch with rising interest rates, steep electricity bills, and growing supermarket costs.
“Many people are anxious about how they would cope with further RBA rate rises on top of the nine we’ve had already,” Ms Mortimer told Savings.com.au.
“That’s why we’ve reduced the rate on our five-year fixed rate home loan, so borrowers can achieve peace of mind in this challenging environment.
“Our five-year fixed rate home loan is aimed squarely at owner-occupiers, who want to lock in a rate they can handle for five years, so they can move forward with confidence.”
Are more rate rises on the cards?
The RBA returned with a hawkish tone in the February Board meeting and warned of more rate rises in the coming months, suggesting some homeowners may be tempted to fix their rate to avoid additional increases to their repayments.
Morgans Chief Economist Michael Knox said the RBA’s tightening was far from complete, bumping his cash rate forecast to 4.85% by August.
This suggests another possible 150 basis points of hikes are yet to come which would see the average variable owner occupier home loan jump to 6.48% p.a.
Last week, the RBA forecast more than 800,000 Australian households are likely to face further financial pressure as many shift to more expensive variable rates in 2023.
In the interests of full disclosure, Savings.com.au is an associate of loans.com.au and Firstmac.
Image by Persnickety Prints via Unsplash
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