Fixed And Variable Rate Home Loans - Which One Is Better?

Many individuals are not aware that variable rates move in a different way to fixed rates and by the time variable rates have bottomed they have missed one of the best chances to acquire a fixed home loan rate. While variable interest rates are encouraged by the Reserve Bank, fixed rates are very different. Fixed rate pricing is usually driven by those who invest in the fixed rate wholesale markets.

For anybody who is thinking of fixing their home finance loan but don’t know when to make the move, the best fixed home loan rates are usually out there when variable interest rates are somewhere between three and nine months away from reaching their bottom. Remember that there are normally specials available on fixed home loan rates that may at the same time make this alternative more inviting for you.

Plenty of consumers decide on a fixed home loan rate for the confidence it offers over installment amounts, you should consider fixing your home loan any time the loan terms, conditions and options are ideal for your circumstances.

It’s important to always think about your financial predicament and motivation for fixing to determine if a fixed rate home loan is the correct choice for you, whatever the interest rate environment at the time.

For those who require certainty of home loan repayments, fixing all or part of your home loan is certainly an option worth taking into consideration. Your Central Coast mortgage broker will help you to find an appropriate wholly or partially fixed home loan rate with the right structure anytime you require one.