Fixed rate loans offer value to investors

Lower fixed mortgage rates are helping to bring investors back into the market says BIS Shrapnel senior project manager Jason Anderson. Major banks are offering three year fixed rate mortgages for as low as 5.3%, with standard variable rates around 5.91%.

Anderson says the gap between fixed and variable rates could get even wider. "When you get to the point where you can get positive gearing on an investment, around six per cent, every point you cut below that is passing money on to the investor, and if you can fix the rate you can lock that return in."