Access Loans - To Fix or Not to Fix?

To Fix or Not to Fix?

Those homeowners still weighing up the question of “to fix or not to fix” need to be very careful not to rush into a “fear based” decision.

Variable interest rates could  rise in the short term, however, with the latest developments in overseas financial markets, these are just some of the many factors that could result in a series of rate drops over the next few months, possibly some very significant drops.  

There are some fixed rates at the moment that look quite attractive to woo uncertain borrowers into a long term product that may or may not suit their own personal needs.

Consumers also need to make sure they understand the limitations and general lack of flexibility that come with most fixed rate products and possible extremely high exit costs if they need to exit or alter the loan during the fixed period.  This is particularly important for consumers on high income that are in a position to make significant extra repayments regularly.

Based on the information at hand at time of writing, we feel most homeowners would be better off to remain with variable rate loans but urge them to engage a professional broker to assess their individual needs and situation. 
An independent professional broker can calculate the difference between variable and fixed over the next 3 to 5 years and then help the homeowner make a well informed decision on what will work best for their particular situation.

Related Articles:

http://www.accessloans.com.au/articles/94-thinking-of-switching.html

http://www.accessloans.com.au/articles/147-loan-health-check-review.html

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