IS IT TIME TO FIX YOUR RATE?

Recent increases in variable interest rates have reignited the fixed-rate debate. So what are the potential benefits of fixing? Just as with any home loan product, there are various features to consider.

Fixed-rate loans offer certainty in future repayments for up to 10 years. Generally the additional amounts you are allowed to repay will be limited but most lenders will split your loan so that you can enjoy the benefits of both fixed and variable rates. Some lenders’ fixed rates are lower if taken as part of a home loan package (potentially including an annual fee) but some loans come with no monthly fees and allow additional repayments and repayment holidays.

Some lenders also charge a “rate lock fee” to guarantee that the advertised rate will not increase after you apply and before you settle.

Talk to your lender and check comparison sites such as Canstar to see if a fixedrate offer would suit you.