Posted in fixed interest

The Reserve Bank of Australia (RBA) has cut the cash rate, and more cuts are expected in 2025. All big four banks anticipate at least two cuts this year, with some predicting up to five reductions. So, should borrowers choose a variable home loan rate, a fixed one, or a split rate? The answer depends on your priorities.Understanding your options:Variable home loansA variable home loan rate moves up and down with market interest rates. If the RBA cuts the cash rate again in 2025, your lender m...

Deciding whether to fix your interest rate or stay variable depends on various factors, including your financial situation, risk tolerance, and outlook on interest rates. To understand your options, BOOK NOW. Here are some considerations to help you make an informed decision: Fixed Rate: Certainty and Stability: Choosing a fixed interest rate provides certainty and stability in your mortgage repayments, as your rate remains unchanged for the fixed term (usually 1 to 5 years). This ...

With interest rates on the move, many people are shopping around for home loans.   If you’re considering refinancing, it’s a good idea to be aware of a few pitfalls when doing your research. Here are six mistakes to avoid.  Mistake #1: Only looking at the interest rate  Sure, getting a more competitive interest rate is appealing, but there are other factors to consider when comparing loans. For example, you may benefit from features such as an offset account...

If you took advantage of record low interest rates in 2020 and 2021, it’s time to put a plan in place to manage what could be a significant change in your home loan repayments upon expiry of your fixed rate loan. What happens when your fixed rate loan expires? Your interest rate will revert to a variable interest rate and as a borrower who took advantage of historically low interest rates your interest rate may increase by between 2 - 3%. On a $500,000 loan 30-year loan, a 3% increas...

If you’re currently playing the waiting game wondering what will happen when your fixed rate term ends, we understand what a stressful time it might be. Fixed rate borrowers have been temporarily shielded from the Reserve Bank’s cash rate increases, but for how long? It’s estimated that almost 40 per cent of Aussies on low fixed rate loans will roll off them next year. This could result in a considerable increase in mortgage repayments for households that are already stret...