1. News
2. ›Does Fixing Your Mortgage Cost You More

Does fixing your mortgage cost you more?

With the threat of interest rate rises looming month after month, talk of the Reserve Bank moving the cash rate and with the banks taking the unprecedented stand of moving rates outside of the Reserve Banks review process, has many borrowers considering whether they should be fixing their interest rates.

If you are considering this now you may have missed the boat.

Some banks are starting to advertise longer term fixed rates like five or ten years. This should come with a sign that says "Buyer Beware" as statistically most borrowers' are better off staying with a variable rate loan and not fixing. Fixing your loan means that you have less flexibility and additional loan break costs.

The flip side of all this is that fixed rates offer certainty of repayments.

The vast majority of borrowers when fixing a loan opt for three years fixed as this gives them some comfort knowing how much they will be repaying each month on their mortgage. Some borrowers fix a portion of their loan and leave a portion variable giving them the flexibility they want.

Choosing the right home loan product is not hard when you speak to a qualified broker before you do anything with your loan make an appointment to see your Australian Loan Company broker.

All brokers with The Lending Shop are members with MFAA - The Lending Shop is proudly operated by the Australian Loan Company Ltd.

Wholesale aggregator
of the year 2008

Finalist - Wholesale aggregator
of the year 2009