December 15, 2016
Are you cheering because you locked in your interest rate at the right time?
No.... well statistically less than 1 in 7 home loans in the past 6 months have been for fixed rates, even though rates are at record lows.
So now that rates are ticking up marginally, you may be thinking about fixing the mortgage, but then you hesitate as fixing may now be more expensive!
You ask yourself “why didn’t I fix at precisely the right time”?
That is because it is very hard to pick a turning point in any market – that's just life.
The other reason is that most of us dislike missing out on a bargain more than we enjoy an equivalent gain.
Think about it – you will be more annoyed about losing $50 than you would be happy about getting a $50 windfall.
And it’s the same for the mortgage market. When fixed loans are being advertised at just 3.5 per cent, you may have thought variable loans might get even cheaper (well isn't that all the chatter across the media and those in the know?)
According to Mortgage Choice chief John Flavell "I think it's human psychology, I want to chase the absolute cheapest, and I'd feel more peeved about missing the cheapest than having to pay a little bit more".
Now, the financial markets have abruptly changed their minds on the outlook for interest rates, and this has made fixing more expensive.
Our advise is to think about fixing a mortgage in this context - fixing a mortgage is not about bargain hunting, but about managing your cash flow and providing certainty.
Does that appeal to you? call us today and get the right fixed loan now while you can!