Property Prices are on the move and, reviewing the recent media attention, interest rate rises appear to be heading our way soon and the banks are lining up with new products to secure your business.
" BankWest Mortgage Could Spark Price War. A NEW price war is set to erupt across Australia’s $860 billion home lending market, with Commonwealth Bank owned – BankWest to launch a new mortgage product that will have an interest rate cap until late 2012." The Australian, September 2009
So the question that is on the mind of many investors appears to be...“To Fix or Not To Fix?”
This doesn’t have to be a tough decision; this exclusive Mortgage Bite is here to help you through the mortgage maze.
Do you:
Want predictable repayments?
Foresee major changes to your family arrangements, job or business?
Believe rates will rise in the near future?
Fully understand exit penalty costs with early repayment?
If you answered YES to most or all of these questions, a fixed rate loan may suit. It could be time to lock it in now.
Why should you choose a fixed rate loan?
It will help you budget to manage your cash flow, stress free.
You’re looking for certainty in your monthly loan repayments to the bank.
Property owners who have a number of financial responsibilities can feel secure knowing that their repayments will be consistent, and that their interest rate is protected from further increases during the term of the fixed period.
Is a variable loan is the way to go?
You will benefit if the interest rates increase.
Minimal exit costs on early repayment (check with your lender).
A Variable housing loan gives flexibility. Any surplus cash each month can help to pay the loan off faster. Extra repayments made to the loan can also be redrawn should the funds be required elsewhere.
To Fix or Not To Fix - what would your answer be at this moment?