To fix or not to fix your home loan?

So, do you fix your home loan or not? The answer is subject to your circumstances and preferences. To assist you, here are some considerations comparing fixed and variable home loans.

Fixed home loan advantages include certainty with same regular repayments and interest rates and no nasty surprises if interest rates increase. This makes it much easier to budget your home loan repayments.  Disadvantages are that if rates decrease you miss out on accessing lower rates and you may be charged hefty break fees if you sell your property, change your loan structure or pay extra off your loan.

Advantages of variable home loans are that you can make unlimited extra repayments to reduce your mortgage without incurring fees, you can access an offset account to reduce interest costs and your loan term and if interest rates decrease, you reap the benefits of this too.   The disadvantages are that if rates increase, so do your minimum variable loan repayments.

Ideally you can structure your loan as a combination facility, where you can have your loan part fixed and part variable to get the best of both worlds. Call our office to discuss the best loan structure options for you.

Jaleesa Paine
Mortgage Broker
0411 665 170