Is a Fixed Rate Loan Right for You?

To fix or not to fix??

It all depends on your financial situation.

Are you about to exit a fixed rate loan??

Are you wanting to access equity in your home for future investment??

Are you wanting to protect yourself against future interest rate rise?

The main reason borrowers refinance or fix their mortgages is to protect themselves from interest rate increases. While you won't have to worry about interest rates rising, there are some disadvantages to these mortgages:

• Less flexibility – you may not be able to make additional repayments without incurring a penalty.
• Fewer features – Many fixed-rate loans do not include offset accounts or redraw options, which can help you pay less interest.

When you have a fixed-rate loan, refinancing can be difficult. This is due to the fact that many lenders charge break fees if you cancel the mortgage before the fixed period expires.

If your fixed rate is about to expire, now is a good time to consider your options.

Although fixed rates of less than 2% are not currently available, many lenders are offering variable rates of 1.99 percent with an offset.?

There are numerous advantages to having funds sitting in offset - Having cash on hand allows you to consider expanding your property portfolio when the opportunity arises.

It's a great time to think about your options and make a financial plan for the future.

Schedule a no-obligation consultation today with Sandcastle Finance.