22 Aug Interest Rates… Should You Fix?
Fixed interest rates are often significantly less than variable, and a very tempting way to reduce monthly mortgage repayments and inject cash back into your household budget. There are a myriad of reasons for fixing your loan (or for staying variable), and the decision is very specific to your circumstances.
5 Key questions I ask:
- Do you plan on selling during the fixed rate period?
- Do you need an offset account?
- Do you want flexibility to make additional repayments and have access to redraw the additional repayments?
- Do you expect any significant changes during the fixed rate period?
- What is the overall mix of your loans, home loans, investment loans, personal loans etc?
Often it may be preferable to have a mix, or split loan “package” (part fixed and part variable) to enjoy the benefits of a lower interest rate fixed loan but also the benefits of a variable loan split (offset account, redraw, etc).
Refinancing and consolidation of small debts, or getting a better interest rate can sometimes make a huge difference to the household budget.
A professional broker will help you assess your entire situation and give you options and recommendations on the most suitable overall package tailored to your individual circumstances and future plans. They then assist will all the paperwork and dealings with the bank selected. Ongoing a good broker will become much like your own personal banker – but as we are mostly independent and self-employed- someone you will know professionally over a very long period of time. I have been a CPA accountant for over 20 years… and have professional relationships with many people spanning 20 years plus.
I generally don’t charge clients for the brokerage or for mortgage advice and my clients are very satisfied to have a professional working for them to provide different banking options specifically tailored for their individual circumstances. Mortgage brokers are paid via commissions paid from banks (always fully disclosed to clients)… and we deliver competition to the market as well as meaningful long term benefits to our clients.
If you want a professional broker in your corner. working for your best interest, then check testimonials and recommendations, and make contact. If it feels like a good fit, it could save you thousands in interest and in make a huge difference to your budget.