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Jenna H.
Jenna H.
Neutral Bay, NSW

I read an article suggesting the RBA should look at raising interest rates by 0.25% so what do people think, is now a good time to be locking in a fixed rate term?

8 months ago


I think that for every article that you can find that tells you rates are on the rise, you can find one to say rates wont rise anytime soon. I also suspect that if the banks' collectively dont see interest rates going up in the short term, they would be happy to lock as much as possible in (higher) fixed rate products......

a poofteenth of a percent one way or the other is really going to make bugger all difference to anyones life. Look at rates in the context of what has been perceived as normal. You dont need to go too far back in time when anything under 10% was seen as a sweet deal. My PB was 23.5% back in the mid 1990's .......and this was with one of the BIG FOUR banks.....now THAT was painful, so forgive me if I seem a little amused when someone paying 5.5% carries on like their throats been cut:)

Sooo, look at what you want to achieve: if its certainty you are after, then lock it in and deal with the slightly higher rates. If you want to ride the variable roller-coaster, then do that. Or hedge your bets like all the advisers tell you and lock in some and keep some variable.

But get some advice from someone who doesn't stand to benefit by way of a fat juicy commission on your mortgage. And be prepared to pay for it.

good luck


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