Due to a series of rate increases to interest only; variable rate investment loans this has been the number one question I’ve been asked this week.
My clients have reported rate increases of around 0.40% (Equivalent to an increase of $400 per year per $100,000 borrowed)
So stick or twist?
Pros - A fixed rate could save you some dollars per month; fixed rates with most lenders are currently sitting below the lenders variable rates
During this time of uncertainty a fixed rate will give you peace of mind and will help you avoid the stress of waiting for the next update from your lender.
Cons - Most fixed rate products do not allow you to use an offset account (Although you could hedge your bets and fix a portion of your loan and continue to offset the remaining variable portion).
Fixing your home loan is a personal choice and really depends on your attitude to risk, best bet is to take action, compare the options available then make an informed choice.
Book in a 15 minute chat with me today: https://calendly.com/adambroughtonmc