February 14, 2017
As we all know, rates are at the lowest levels of all time but they can't stay that way forever. The question many people are asking is when, or if, they should fix their loan. Some lenders have already started to increase their fixed rates and others have kept them below what most people have as a variable rate.
The other consideration you need to take into account is what you can do with a fixed rate loan. The majority of them are very restrictive with no redraw, limited extra repayments and no offset. There are exceptions though, so it's great to ask what you can and can't do with each lenders fixed loans.
Many people prefer to have both a variable and fixed component to their loans. You can create any split you want so if you are thinking about creating a fixed portion make sure you keep a portion variable to give yourself some flexibility with extra repayments during the fixed period.
To help you out (well somewhat) I've given an explanation of the difference between fixed and variable loans in the video below. I hope you enjoy.