Is it Time to Fix Your Home Loan Rate?

With home loan rates expected to rise in 2017, Australian home owners and buyers should be reviewing their finances and loan arrangements.

For people considering the option of locking in some or all of their mortgage repayments at a fixed rate, now could be the time to do so (but you’ll need to act fast). What fixed rates offer is reassurance—and protection from the rate increases which lenders can apply to variable loans at short notice. There are pros and cons to fixed rate mortgages, so before you make your decision, you should take the time to understand what it might mean for you.

Most people still take out variable home loans, but fixing has become increasingly popular over the last 12 months, thanks to low interest rates and the very real prospect of out-of-cycle variable rate hikes.

While a fixed rate home loan can offer protection against rising interest rates, it’s important to consider all aspects of fixed loans which are generally far less flexible than their variable counterparts. If you’re thinking about switching to a fixed rate loan, the first step is to speak with an objective adviser to discuss your options and their implications.

Whether you are ready to review your current loan arrangements, buy your first home, move home, invest in property, or consolidate your debts, a mortgage broker can help you to understand your options, and make the process hassle free.