Should you fix your mortgage?

July 25, 2014
David Thomas

Homeowners who are considering fixing the interest rate on their mortgage have been presented with a great opportunity, with some of Australia’s major lenders slashing their 5 year fixed rates to historically low levels this week.


Up until now, getting a 5 year fixed rate under 5 per cent has been virtually unheard of. Today however, many of Australia’s lenders are offering five year fixed rates at just 4.99 per cent.


Earlier this week, both National Australia Bank and the Commonwealth Bank of Australia cut up to 70 basis points from their 5-year fixed rate home loan, taking their respective rates to new lows. With this in mind, now could be a good time for local mortgage holders to consider their loan options.


Deciding whether to fix your home loan is not a decision that should be made lightly. Before making any decisions, it is important for you to educate yourself on the market and understand whether fixing your mortgage will benefit you in the long run. In addition, it is important to consider your future lifestyle and financial goals.


Would you like certainty around your mortgage repayments? If so, then fixing might be the option for you.


Alternatively, are you comfortable managing your finances and prefer to keep your options open in case rates drop further? At the end of the day, if you did decide to fix your mortgage and rates were to fall further, you would be unable to take advantage of these lower rates.


Weighing up the pro’s and con’s associated with fixing your mortgage is vital as it will help you understand exactly what you are getting yourself into.


While deciding whether or not to fix your mortgage can be a tough decision to make, you can take solace in the fact that it is a dilemma many home owners and home buyers face.  And, with many of Australia’s lenders slashing the interest on their fixed rate products, it is a decision that is only likely to get harder.


But, with the Reserve Bank of Australia indicating that they do not plan to lift or cut the official cash rate anytime soon, now is the perfect time pick a strategy that will set you up for the best possible future.


At Mortgage Choice, we have access to hundreds of loan options from 28 different lenders. As such, I am able to help you compare a wide range of loan products, including all of the recent winter offerings, to help you find a home loan that is perfectly tailored to your individual needs.


At Mortgage Choice in Victoria Point, we can help you weigh up your options and see whether or not a fixed rate product is suitable for your needs both now and into the future – so why not give us a call today on 07 3286 7711 to discuss your home loan needs. 

Posted in: Interest rates

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