We are on a variable rate loan at 3.82 and thinking about fixing all of part of the loan for 2 or 3 years. Is now a good time and what are the best fixed rates at the moment?
Good morning Mitch,
This is the big question flying around at the moment. The only true answer is “who knows”.
The reason for people to fix a loan is to take away the uncertainty and to protect against the likelihood of interest rates increasing during that fixed period.
My 2 cents worth is that I do expect rates will be about 0.50% to 1% higher in three years time. When will that happen, will it actually happen?
The things to consider are -
Do I anticipate changes to my personal circumstances in the next three years
What level of interest rates would cause my family stress
How fast are we currently paying down our loan
What features of our home loan do we currently use or would we need to use in the coming 3 years
If you would like to have a discussion please feel free to get in contact at any time
Fixed rates are unreal if your wanting certain ty around your mortgage repayment & you know you are not expecting to pay any lump sums off the loan.
There are fixed rate specials coming out all the Raine and what is relevant today is not always relevant tomorrow.
At this stage you can still lock down a 3 year fixed principal and interest rate of 3.79% - there are others that are lower and some lenders do specials with a portion fixed and a portion variable so you can play both sides of the market.
The other variable here is the lending ratios as many lenders are pricing better for lower loan to value ratios.
To get a more specific guide on what YOU would be eligible for can I suggest you connect with a broker who can quote the market for you.