Fixed? Variable? or Both?

One of the most common questions we get asked is whether or not to choose a fixed rate or variable. Interest rates are currently at record low levels, but how will you cope if they start to rise? As interest rates approach the bottom of the cycle, many Australians are starting to consider whether they should look at a fixed rate home loan. Both loan types have pros and cons and while we cannot predict the direction of interest rates, we can make an informed choice over which type of home loan is most appropriate for our needs.
When considering a fixed interest rate loan, you need to remember to do your homework and make sure you understand the advantages and pitfalls of fixing. Protection against rising interest rates and the knowledge that your monthly repayment will be held for a set period are the main benefits of taking out a fixed rate home loan. On the other hand, a lack of flexibility in the loan product and missing out on falling interest rates are seen by many as a disadvantage. Many lenders will offer a “split” loan where part of the loan can be at a fixed interest rate and part at a variable interest rate.
Our experienced brokers can help you decide if what will leave you in a great financial position and suit your current situation, book an appointment today to have access to great fixed and variable rates and see how much you can save