Is now a good time to be fixing my home loan rate? 2 or 3 years? .... and are there fixed loan where you can still make extra repayments - current rate 3.87% thanks
Fixed rates for your personal Owner Occupied is a good idea, in a time, when Banks are raising rates,and are lending with tighter guidelines. Please to your existing bank,and ask them about the maximum you can pay as an additional sum over the fixed rate period,most banks allow it but they have varying features,per year or maximum amount in the fixed rate term. Feel free to send me your details, firstname.lastname@example.org, and I can check and advise as well.
Great time to be looking at fixed rates - with increased funding costs becoming a common catch cry amongst lenders and, US the consumers, bear the brunt of the rate increases on one hand but enjoy the benefits via our superannuation on the other. It warrants a good robust discussion around the benefits you get out of a fixed rate.
The best money at the moment is on the 2 year fixed rates with slightly higher on the 3 year (by around 0.05-0.15% higher depending on lender)
Most lenders have a restriction around additional repayments and is generally up to $10,000 per annum and some lenders can allow $20,000. If your concerned around the maximum repayments perhaps it is worth exploring part fixed part variable with the variable component representing the maximum amount of additional repayment you can make each year multiplied by the number of years you have fixed. That way you could play the maker both ways.
You could even look at fixed rates that have an offset account attached - they are a bit of a unicorn but they can really work if your disciplined in making your repayments.
Definitely are some options for us to explore a tailored home loan structure that will enable you to enjoy the benefits of a stable repayment and ability make additional repayments without any additional charge.
Enjoy the long weekend and securing your financial future.