Make Your Best Decision
DJ play the music… “Celebrate good times, come on dah dahhh da da dahh da da dahhh YAHOO”. Okay okay I admit, signings not my strong suit, guess I’ll have to pass on that audition.
We’d all agree that rates are low, really low. The affordability has never been better many wonder when the good times will end? I’m often asked “is now a good time to fix my home loan in?“. A great question with much to consider in making your best decision.
I wont bore you with an explanation on how the fixed and variable rate markets are influenced as serves no purpose. Rather lets discuss what’s important – do you know why you’re looking to fix your home loan in? By first understanding the fundamentals, we’ll be better equipped in making an informed decision.. The beauty of fixing:
- Stability / Budget (knowing what your repayments are month on month).
- Planning (help allow to forecast for the future).
- Certainty (peace of mind knowing the repayment wont change).
The cost of getting your decision wrong could be costly. Did you know that with a fixed rate the banks can charge break costs if you sold, refinanced or paid your home loan off… Crazy right? Furthermore the majority of fixed home loans are inflexible because they don’t allow you to redraw, nor make additional repayments or have a 100% offset account.
The problem, David (you and I) vs Goliath (the banks). The banks with all their resources and capital are in the business of making money. Their high paid analysis are on the payroll to ensure the bank succeeds. Therefore we must forget about the rates and realise why we’re wanting to fix. By doing so not only will we make a better decision but be sure its the right one.
The Best of Both Worlds?
Its been said that you can’t have your cake and…. I’m here to say you can! A possible solution to this conundrum is having a portion of your home loan fixed and variable. This is known as a split and offers the best of both worlds. An experienced mortgage broker can advise you on the right split for you, taking into consideration your specific financial situation and determining the percentage fixed vs variable.
My passion is in helping people grow their investment property portfolio, assisting to maximise profitability and mitigating risk (all through loan structure and sound investment strategy).
My Contact Details
- Joshua Vecchio – 0432 989 866
What do you think, I’d love to hear from you
- Is now a good time to fix?
- Is the property market hot in your suburb?
- Who will win the ashes?