Our home loan has been fixed for 3 years as we wanted certainty in the repayments and haven’t paid off much off the principal.
We want to pay more now but have been offered 3.89% for 3 years. Should we fix again or have a variable rate so we can pay more?
Hi Isabel, thanks for the question and I can see why you asked, depending which bank you ate with being variable certainly keeps your loan open to many options whilst fixing provides certainty of the rate can limit you to some degree.
I’d be happy to discuss and share with you what all the banks on my panel offer and we could provide you with a clear comparison to see if we would then consider this to be a good deal for your own personal circumstances
Fixing is great for your peace of mind. Depending on your circumstances your broker may suggest a split loan.
If you have the capacity to pay your loan down by $100,000 over three years, you could have a $100,000 variable split and have the rest fixed. This could potentially fulfil both needs for you and save you interest along the way
Happy to have a chat if you would like to discuss further give me a call on 0435.474.498
Some lenders allow you to pay extra on a fixed rate loan. There are even some that allow 100% offset on a fixed rate.
I have a lender that will allow extra repayments and the ability to attach an offset account as well! Call me on 0414 727 308 to see if you qualify.