Hi, is now a good time to be fixing some of our home loan, current rate is 3.99% variable?

Hi Lindsey

If you are worried about rates rising (and they eventually will!) then I do suggest fixing a portion of your loan. You can fix any ratio of your loan that you like; however I usually suggest to my clients that they fix the majority of their loan and leave a portion variable so that you can pay as much as you can on the variable part (some fixed rates have restrictions on how much extra you can pay on your home loan without penalty)

I have access to 3 year fixed rates starting from 3.74%

Regards
Sam Zammit
South West Lending Solutions
1800 824 325 | 0414 727 308
www.southwestlendingsolutions.com.au/apply-now

Hi Lindsey,

The perennial question of fixed versus variable. This one has been around since God was a boy.

As everybody saying interest rates are and I’m Prisa dented low level for the longest period in history and there will come a time where rates will go up, but when will that be?

To a lot of my clients I like to suggest that they review the current Financialposition and the importance of having a stable, reliable, predictable monthly loan replacement on a scale of 1 to 10. With one being not important and 10 being extremely important.
If I have a client who says that it is a 10 for importance that they have a stable Matthew replacement explore the suitability of a fixed rate option. This is very important piece to discuss with borrowers who are first homebuyers or borrowing a large loan that sees him with not much disposable income. That’s where the volatility comes in.

In situations like where we are now, I think everyone agrees the next interest rate move from lenders will most likely be up. When that will be, no one knows?

There are some sensational fixed rates available that start with the three and they’re certainly worth considering against your current situation and objectives.

Your question is often handled by my clients by select a portion of the loan fixed and a portion variable so they can enjoy a foot in both camps - fixed and variable.

To get to the details for you I strongly recommend a conversation with a broker who understands your situation and motivation for why fixing may be beneficial for you so they can cost out likely scenarios based on interest rate movements to help you make a more informed decision.

I trust that goes someway towards giving you more information about some of the benefits you can achieve by fixing.

Regards

Craig

Hi Lindsey,

Any time is a good time to fix if it meets your needs and goals over the fixed period and beyond.
I currently have a number of clients who are fixing up to 80% of their loan and leaving 20% variable so they can clear that portion during the fixed period.
Reasons not to fix include - the cost involved if you sell your house or have to refinance during the fixed period. The possibility that rates will go down further. The limitations on the amount you can pay extra into your loan. Not many fixed loans have an Offset facility.
Reasons you may want to fix - peace of mind that your repayments won’t change. The expectation that rates will rise during the fixed period.
Have a detailed discussion with your broker and then make an informed decision that best suits your individual situation and needs
Best of luck
Scott