 Should you fix your mortgage?
Leading mortgage brokers are convinced now is the time to fix your home loan, or at least part of it.
With interest rates so low, Loan Market Group executive director John Kolenda says even though there may be more Reserve Bank rate cuts, consumers should move now to avoid missing out.
"The best time is always that window before variable rates reach the bottom," Mr Kolenda said.
"If the variable rates bottom out and fixed rates start to hedge up, then they (consumers) miss the boat and it is going to cost more."
ICAP senior economist Adam Carr agrees saying that even if the Reserve Bank cuts rates again, there is no guarantee the banks will pass on the savings. This means that homeowners should act now so as not to miss out.
Westpac offers a three-year fixed rate loan at 5.39 per cent compared to their standard variable rate at 5.91 per cent.
In the past few months, the RBA has lowered the cash rate by 4.25 percentage points to three per cent, a 49-year low, in a bid to stimulate the local economy. The cuts started in September and the latest cut of 25 basis points came earlier this month.
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