When Should I Fix The Interest Rate As Opposed To Going Variable?

Many individuals are not aware that variable interest rates move in a different way to fixed rates and by the time variable rates have bottomed they may have missed their best chance to acquire a fixed home loan rate. 

Central Coast Mortgage Brokers

Whilst variable interest rates are affected by the Reserve Bank, fixed rates are very different. Fixed rate pricing is driven by individuals who invest in the fixed rate wholesale markets.

If you are contemplating fixing your home mortgage loan but don’t know when to make the transfer, the lowest fixed home loan rates are generally offered when variable interest rates are somewhere between three and nine months away from hitting their bottom. Do not forget that there are frequently special offers available on fixed home loan rates which may at the same time make this option more attractive for you.

Quite a few people choose a fixed home loan rate for the confidence it offers over payment amounts, you should look at fixing your home loan whenever the loan terms, conditions and options are suitable for your situation.

It’s important to always think about your finances and motivation for fixing to ascertain if a fixed rate home loan is the right choice for you, whatever the interest rate environment at that time.

If you want certainty of mortgage repayments, fixing all or part of your home loan is undoubtedly a possibility worth considering. Your Central Coast mortgage broker will assist you in finding an appropriate fully or partially fixed home loan rate using the right structure at any time you require one.