If you need to borrow some money, it may seem that now it’s the moment to take a loan, as fixed rate home loans are lower than ever in Australia. Still, experts advise you not to hurry and let yourself be fooled by what it seems to be a great deal now.

A new situation for lenders and borrowers

Recently, the subsidiary lender of National Australia Bank – Ubank – announced that their fixed rate home loans for one and three years have hit rock-bottom. At the moment, their rate is only 3.69%, which is the lowest rate ever offered by the bank.

Moreover, the Reserve Bank of Australia had a new low record regarding cash rate in May 2016, of only 1.75%. According to experts, this rate is expected to continue to collapse during this year.

Bessie Hassan, the spokeswoman of Finder.com.au, mentioned that the latest deals are some of the lowest fixed rate home loans we have ever seen.

This situation leads automatically to a strong competition between the Australian lenders. Of course, Aussies can benefit from this, and take advantage of the low-interest rate. But let’s see some of the pieces of advice offered by experts.

Experts’ recommendations

As it was already mentioned at the beginning of the article, financial specialists do not advise Aussies to hurry and take a fixed rate home loan as soon as possible, in order to benefit from the lowest rates.

Why? They have at least two reasons. First of all, most of them anticipate that fixed rates will continue to drop during this year, and even in 2017. This means that soon, Australians can enjoy even better deals than now, so why not wait a little and pay less for your loan?

Another significant reason why you should not let yourself lured by the lenders’ offers is that fixed rate home loans are not always the best option, as Bessie Hassan warns. If you decide on this option, you should know that you will not benefit from much flexibility with such a loan. Moreover, if you want to go with refinancing or break your current loan’s fixed term earlier, you have to pay large amounts of money.

This kind of loan has some significant fees you should consider, even though the lender may want to attract you with different strategies, such as cashback offers and rewards programs.

Therefore, before hurrying to take a fixed rate home loan as soon as possible, you better compare the advantages and disadvantages of this borrowing option.