Thinking about ‘Fixing’ your Home Loan Interest Rate?

We are in a falling interest rate cycle however this will not go on forever. Economists forecast reductions in rates this year by 0.5%. There are also predictions that...

... rates might rise around the end of the year.

Let’s start with what is a fixed or locked home loan interest rate? It is a Contract between you and the bank that says that you will pay the agreed interest on the amount borrowed for the agreed period of time. SIMPLE !

Try fixing your rate for 1, 2 or 3 years. Find the cheapest rate, and pay as much as you can.

Fix as low as you can for as long as you can BUT be careful to lock in at the right time. See “Piece of Gold”

Try splitting your loan and fix part, it’s like hedging your bets. It leaves you with some useful flexibility.

What Great Bummers can befall you? Penalties if you refinance or pay out your loan whilst fixed and, being unable to pay down the principle whilst fixed.

A little piece of Gold! To gain some insight as to where interest rates might go, just look at the term deposit rates for 6 months 1, 2, 3 and 5 year terms. Are they going down, up or what?

It’s NOT DEFINITIVE but it gives you some idea .

Paul GILLMORE DFS

Founder and Director

Southern Cross Financial Services

07 5429 5561

This email address is being protected from spambots. You need JavaScript enabled to view it.

Back to Basics Business Solutions is the place to start when you need to focus on the basics, however we offer so much more. Our mission put simply, is to help you take your business ideas and then guarantee your success.

Your Business Ideas
Guaranteed Success
Start here!

Realistic & practical advice, proven experience & expert resources = results guaranteed.

That's a promise!

If you were guaranteed to succeed, what is the one business goal you would most want to achieve?

What we do: once we have a complete understanding of your objectives and the market you operate in, we develop a clear, no nonsense strategy that will deliver real results to your bottom line.

Realistic & practical advice, proven experience & expert resources from the team that has done it all many times before. We charge only for agreed results. What this means to you is guaranteed success, every time.

Start by booking yourself in to a free sample webinar by clicking the Register Now button above.

Articles

Thinking about ‘Fixing’ your Home Loan Interest Rate?

Login Form