To Fix or Not to Fix Rates? – That is the Question
It’s fair to say no one really knows what’s going to happen with interest rates over the next few years. Even though we can all speculate on what may happen with interest rates, until the actual day of the RBA meetings we never really know.
- One strategy of mitigating your risk against a rate rise, is to fix your rate for a set period of time. The benefit of this is that it will provide you with the reassurance of steady monthly repayments.
- And it’s good to remember that competition amongst banks is always present, so there will always be a range of rates and conditions available to borrowers. However, all of these offers are usually tied to the specific lending policies of the lender and not always available to everyone.
Ultimately, the judgement to fix or not to fix your rate is based purely on your personal preference. This is because brokers do not have the luxury of a crystal ball to provide definitive advice on the future of rates and where they may land.
If you have any questions or need further information, reach out to discuss your situation.