To Fix or Not to Fix?
To Fix or not to Fix your home loan – that is the question.
The RBA Cash Rate has declined dramatically in the last 6 months – reaching a low of 3% for the moment. This is tipped to continue dropping even further in the next 6 months. This drop has been reflected in most banks’ variable home loan rates but this is not being reflected in business loans, credit cards or even fixed rates.
When should you fix your loans?
· If a few more interest rate rises will make your loans unaffordable.
· If you would like certainty of repayments to assist with your budgeting process
· If you are close to retiring and do not want the stress associated with increasing rates.
· If you have high levels of debt which will become burdensome with a few rate rises.
When should you leave your mortgage on variable rates?
· If there is a chance of selling your property in the near future.
· If you access the equity in your property often. (for consolidation or investment)
· If you comfortably can afford your loans – even with multiple future rate increases.
· If you are able to pay above your mandatory monthly repayments.
If you would like to discuss options available to your situation, do not hesitate to call my team and I on 1300 137 539 or email me directly on harry@chocolatemoney.com.au.
Kind regards,
Harry Pontikis
Director
Chocolate Money
0411 258 058 or 1300 137 539
Disclaimer:
Terms and Conditions apply. The information in this document is general in nature and has been prepared without taking account of your objectives, financial situation or needs. Because of that, you should, before acting on this information, consider its appropriateness and we suggest you seek financial advice specific to your situation before making any financial decisions.