When purchasing a property, refinancing or just renegotiating with your current lender, borrowers can generally decide between fixed-interest loans that maintain the same interest rate over a specific period of time, or variable-rate loans that charge interest according to market rate fluctuations. With interest rates at an all-time low, and many lender’s fixed rates significantly lower than their variable options, refinancing to a fixed rate is a very attractive option at the moment. While none of us know what the future holds, we can look at the facts and make an educated decision. Here are the ins and outs of fixed-rate loans.
If you are looking to purchase a home or considering refinancing, one decision you’ll need to make is whether to fix your home loan or not.
It’s important to consider both options and align it with your financial goals and needs. Both options have pros & cons and below are some things to think about when deciding.
- Interest rate rises won’t impact you if they rise above your fixed rate, as you have agreed to remain on the same interest rate for the fixed term. Read more