To fix or not to fix is a common question that many Tasmanians ask themselves when it comes to choosing a home loan.
Both options have their pros and cons, but before we go any further, a word of advice - do not get swept off your feet by the lowest rate. The fundamental key is to carefully consider the features and benefits of different home loans (such as redraw), along with associated fees and charges (such as annual package fees).
As an example, with a fixed rate home loan there are often extra charges if you want to make changes. If you sold your home during the fixed period to move elsewhere, you may incur a large break cost fee for repaying your loan early.
On the plus side, if you are looking for certainty then choosing a fixed rate home loan will ensure your repayments remain the same for an agreed time, regardless of any interest rate changes.
Importantly, don’t let the fear of future interest rate increases convince you to fix. Consider all your options and make sure it’s the best choice for you. If you are still unsure, there's always the option to fix part of your mortgage, rather than the full amount.
Want to talk more? Make an appointment with your local B&E home finance specialist today.
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