Don't get fixated on fixed rates!

By the resi financial blog team, 03 October 2013

Should I fix my home loan

Fixed interest rates in Australia can fluctuate throughout the year, accommodating to the changes in the market and the economy.

Securing a fixed home loan when the interest rates are low could result in you saving thousands of dollars on your mortgage.

However, picking when fixed rates are at their lowest is hard to predict, even for the experts.

If you’re worried about locking yourself in only to see rates drop again you may want to consider fixing just a portion of your loan and keeping the remainder at a variable rate.

For example, if you had a mortgage of $300,000, you could choose to secure $200,000 of the loan at a fixed rate and keep the remaining $100,000 at a variable rate.

Another benefit to this strategy is that you could get an extra discount off the fixed rate portion of the loan, plus you will have access to the advantages available on variable loans, such as additional repayments.

A fixed rate loan isn’t for everyone, however, and many property owners prefer to ride the market with a variable rate home loan.

This type of loan is a great option for those looking for a good amount of flexibility as it tends to offer more features than a fixed rate home loan.

There are pros and cons to all home loan products. To ensure you choose the best loan for your lifestyle you should first speak to a home loan specialist who can recommend the loan that would best suit your personal circumstances.

For expert advice and assistance, contact one of the resi loan specialists today.

Categories: Home Loans