How to Choose Between A Fixed And Variable Rate Home Loan?

Many people are not aware that variable interest rates move in a different way to fixed rates and by the time variable rates have bottomed they may have missed the best possibilities to obtain a fixed home mortgage rate.

Whilst variable interest rates are affected by the Reserve Bank, fixed rates are very different. Fixed rate pricing is driven by individuals who invest in the fixed rate wholesale markets.

If you are thinking about fixing your home loan but don’t know when to make the switch, the best fixed home loan rates are likely to be offered when variable interest rates are between three and nine months off reaching their bottom.

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Take into account that there are generally specials available on fixed home loan rates which may at the same time make this solution more attractive for you.

Quite a few people decide on a fixed home loan rate for the certainty it gives you over installment amounts, you should look at fixing your home loan when ever the loan terms, conditions and options are suitable for your needs.

It’s important to always consider your budget and motivation for fixing to determine if a fixed rate home loan is the ideal choice for you, whatever the interest rate environment at that time.

If you happen to require certainty of home loan repayments, fixing all or part of your home loan is undoubtedly a possibility worth looking at.

Your Central Coast mortgage broker will assist you to find an appropriate wholly or partially fixed home loan rate together with the right structure whenever you require one.