A lot has happened in the mortgage market over the last couple of months, with several lenders lifting the interest rates across their suite of home loan products.
Moving forward, many economists believe rates will rise further this year, with the Reserve Bank of Australia widely expected to lift rates at some point within the next 12 months.
With this in mind, it is clear that the bottom of the rate cycle may soon be behind us. As such, now really is the perfect time to review your current financial situation and make sure you are still in the right product for your needs.
Whether you’ve been in your mortgage for a few months or a few years, the start of a new year is always the ideal time to compare lenders and investigate what deals are available.
With some lenders offering fixed rates below 4% p.a., you may find that now is the perfect time to fix part or all of your mortgage.
Is fixing right for you?
A fixed rate will not only help you to avoid any future rate rises, but it will also provide you with some surety around your regular mortgage repayments.
Over the past few months, we’ve seen an increase in the number of people locking into a fixed rate mortgage. According to the latest data from Mortgage Choice, 19.5% of all home loans written in November were fixed – up from 17.4% the month prior.
By fixing your home loan, you can lock yourself into a low and stable rate for a certain period of time. This rate will not be affected by any rate changes that happen in the market. Furthermore, you will know exactly how much your repayments will be, meaning you can plan your finances ahead of time and maintain your current standard of living.
Expert home loan advice at no cost for you
Of course, before you make any decisions and potentially refinance into a fixed rate mortgage, it’s worth speaking with a mortgage professional.
Your local Mortgage Choice broker can help you investigate what home loan options are available and help you decide whether or not refinancing is the right financial move for you.
So why not give Mortgage Choice a call today and see if you are still in the right product for your needs?