Fixed and standard variable interest rates are expected to remain at their current low levels in 2006, a non-bank lender says. Aussie Home Loans managing director John Symond said competition was expected to remain strong on the back of continued low interest rates. "As the lending market remains subdued, in line with property prices, there will be very competitive rates as major lenders fight harder for market share," Mr Symond said. Fixed rates were becoming very competitive, with a five year fixed rate loan available at a rate lower than the current standard variable rate, he said. "In view of this situation I believe it might be a good time for borrowers, particularly first home buyers, to look at potentially fixing at least part of their mortgages," he said. For those looking to buy property, Mr Symond said there were a number of good deals currently in the market. "Over the year, I believe property will become even more attractive to buyers, especially as more properties come on the market, so it will be a good time to look around," he said. "I continue to believe that the Reserve Bank will not increase interest rates (from 5.50 per cent) for the foreseeable future, especially as there is a stream of mixed data being released on the health of the economy." He said low interest rates and cooling housing prices were providing relief for home buyers, whose average weekly earnings had not kept pace with mortgage repayments over the last decade. Source:AAP