If you get the cycle right, fixing can save you a lot of interest. Get it wrong and it can cost you.
Most economists agree that Australia's interest rates may be on the way up. Even if the Reserve Bank Of Australia decides not to increase the official cash rate the banks have already started to increase their variable (and some fixed) rates.
So now may be a good time to fix before the interest rates increase any further.
Before making the decision to fix your interest rate, consider the following:
1. Do you currently pay additional loan repayments?
2. Do you actively use a redraw facility?
3. What is the fee to fix in your interest rate?
4. Is there a fee to lock in the fixed interest rate on the day you apply?
5. Should you fix the whole loan or just part of it?
6. What happens if you want to sell during a fixed period?
The way you use your loan and your plans for the future can determine if fixing is right for you.
If you think that you may benefit from a fixed rate or if you have questions about fixing, call Brett Mallott of Mortgage Choice Fremantle on 0422 040 646 and together you can explore your individual circumstances and find something that will work best for you.