Why Now Might Be the Perfect Time to Secure a 2-Year Fixed Rate Home Loan

Navigating the current mortgage landscape can feel overwhelming, especially for those who are feeling stretched to keep up with their repayments.

If you’re worried about the rising cost of living and its impact on your financial future, now could be the perfect time to consider locking in a 2-year fixed rate at just 5.39%.

Who Can Benefit from This Option?

? Homeowners feeling the pinch from current repayments: If you’ve found it difficult to manage your monthly mortgage obligations, this fixed rate could ease your financial strain.

? Those looking to maximise borrowing potential: A fixed rate of 5.39% may enable you to borrow more for a new property, giving you greater flexibility to grow your investment portfolio.

Reach out and I can help you run some numbers. Most generic calculators online won't give you the flexibility to change rates during the loan term.

Why Lock in a Fixed Rate Now?

"Why not just ride the wave of interest rate cuts when they happen?"

I hear you.

While some analysts predict interest rates will drop next year, the benefits of locking in a 2-year fixed rate outweigh the risks for several reasons:

1. Peace of Mind: By securing a fixed rate, you’ll know exactly what your repayments will be for the next two years, helping you budget effectively to accommodate your financial goals despite the rising cost of living.

2. Immediate Savings: For example, if you currently have a mortgage with a variable rate of 6.5%, switching to a fixed rate of 5.39% could save you around $400 to $600 each month on an $800,000 loan.

Over the course of a year, that adds up to significant savings!

If analysts are correct in their predictions of 3-4 rate cuts next year, locking in now means you’ll benefit from a lower rate for two years, even if rates drop further in the second year.

You would have the benefits of any savings now rather than waiting for the variable rate to dip below 5.39% which could be at the end of those 3-4 rate cuts.

Addressing the Sticker Shock

For those transitioning off lower fixed rates, it’s understandable to feel overwhelmed by the prospect of paying a higher interest rate. However, consider this:

Congratulations on locking in a favourable rate in the past!

You are now in a position to take control of your financial future. While it might be tempting to hold out for lower rates, the reality is...

Lenders may not pass on full cuts to borrowers when rates do drop. This could leave you paying more than expected if you don’t act now.

Locking in a slightly lower rate now, even if it’s higher than your previous rate, could offer you financial security in the long run.

If you’re feeling strained with variable rates currently in the range of 6-6.5%, a fixed rate of 5.39% might be your best option for stability.

Remember the savings of around $400-$600 each month? (on an average $800,000 loan)

Would that extra buffer help?

With my background in finance and private banking, I take a personalised approach to your financial needs. I understand that every situation is unique, and I'll be working closely with you to assess your options thoroughly.

? Tailored Solutions: Whether it’s a combination of fixed and variable rates or a deep dive into your overall financial strategy, I'm ensuring you receive the best solution for your circumstances.

? Expert Guidance: My ultimate goal is to empower you with the right information to make informed decisions about your mortgage.

Ready to Be In Control?

Don’t let uncertainty dictate your financial future.

Contact me today to explore your options and see how locking in a 2-year fixed rate at 5.39% can work for you.

Camilla Bowhill

Call: 0403 852 733

Email: [email protected]