To fix or not to fix? – That is the question!

Interest rates are lower than they have ever been, and we are now seeing five year fixed rates under 4% p.a.! With unprecedented low rates, now might be the time to consider fixing part of, or even your whole loan – but there are many things to consider before locking it in, including:
 

Pros
 
Cons
  • Certainty of monthly repayments for the term of the fixed-rate period
  • Insurance against rate rises, which will increase your loan repayments
  • The peace of mind that the above two outcomes provide
  • You can fix your whole loan or part of it – giving you greater flexibility
 
  • Additional repayments may attract penalties
  • If a loan is paid out during a fixed-rate term, penalties may be incurred
  • If interest rates fall, you will not receive the benefits of lower minimum repayments
  • Redraw and Offset accounts are commonly excluded from fixed rate offers

  
So ask yourself:

  • Are you likely to make additional repayments or sell the property in the short term?
  • Do you regularly use an offset or redraw facility?
  • Are you happy to pay a slightly higher rate to secure a stable loan repayment?
     
Deciding whether to fix or not depends upon your plans for the future. If it sounds like something you might like to consider, contact us today on 07 3899 2866 or EMAIL US so we can work out the options that best suit your needs.