For the last… ok my whole banking career I have been watching interest rates go down (and down).
Now there’s talk of the rates heading back up, well it’s more than talk, the Fixed rates have already started to go north since December 2021 and the most common thing I hear clients say is ‘I have to Fix my loan now before interest rates go up’
The reality is, you may not need to fix right now, in fact, if you are just fixing now because you are worried your rate might go up it could backfire and you could lock in a higher fixed rate now only to have fixed rates come down slightly later in the year.
On the flip side, you could stay variable and the rate could jump up quickly and all of a sudden your variable rate is higher than the fixed rates. The problem is, no one has a crystal ball, so knowing what to do based on the market is almost impossible.
So what advice am I giving to my clients? Focus on what you can control… Have think about;
1. Your lifestyle
2. How you like to use the loan
3. How much extra you currently repay
4. What your ‘risk appetite’ is
When you have thought through the above you can then match the right loan structure to you and give yourself a little stress relief. You may or may not have the cheapest option but you have the right option to help you enjoy your life style.
If you want to have a chat about your loan structure and what would suit you, book a free zoom meeting here – https://calendly.com/360mortgagesolutions/video-conference
To find out more about 360 Mortgage Solutions head to our website – https://360mortgagesolutions.com.au/