Tracking Interest Rates

Getting a low interest rate on your home loan can be a time consuming experience at Ziggybid we aim to make this process simple and quick.

To understand how interest rates are determined by a bank or any other lender we have made available to you access to wholesale interest rate information, hopefully this will help you decide whether a variable rate or a fixed rate is right for you.

Some borrowers get confused and think that there is a direct correlation between variable home loan rates and longer term fixed interest rates - they are actually not linked and in fact they can move in opposite directions at the same time.

This chart shows how wholesale interest rates have changed over recent months, it might give you an idea of what the financial markets think will happen with interest rates in the future.

You will see that in January 2009 the markets had a 5 year wholesale rate of 4.09% but by April 2009 that rate has increased to 4.62%. At the same time you will also notice that the 30 day short term interest rate dropped from about 4.00% to almost 3.00%

The chart below is called a yield curve and it shows that rates are expected to fall over the next 12 months and then rise after that. One word of caution though - just because the financial markets think things might happen one way it doesn't mean they will.

Wholesale Interest Rates January 2009 - April 2009

To find out who is offerring you the best interest rates now why not send your home loan to auction to start click here