With interest rates at an all time low, the question of whether to choose a fixed interest rate loan is a hot topic. Last month we took a closer look at The Pros and Cons of a Fixed Rate Home Loan, but what if you are torn between a fixed rate and a variable rate home loan? There is a solution – you can take out a split rate mortgage.
Fixed vs Variable Home Loan – Pros & Cons
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