More often than not you’re better on a variable rate than a fixed. There’s a whole bunch of reasons why, ranging from things such as flexibility to exit costs. However that being said, the 3 year fixed rate currently on offer from some lenders is incredibly appealing, with many coming in below 6%.
So how do you know if fixing is right for you?
I would advise that you consider fixing if you’re carrying a lot of debt, but only for a maximum of 3 years where the future is pretty much foreseeable. A short-term fix is the best approach because none of us know what’s around the corner, but we can do some pretty good planning on the basis of a three-year time frame.
For a comprehensive assessment of your personal situation and to ascertain whether fixing is right for you, call us at Trilogy to discuss your options.
Fixed Rate Update
Fixed rates have gone south in the past week.
Maybe this is a sign that variable rates will go down next month?
The best on offer are:
5.59% St George Advantage Package 3year fixed (comp 6.59%)
5.74% Choicelend combo offer 3 year fixed (comp 6.16%)
5.79% CBA MAV package 3 year fixed (comp 6.52%)
5.79% Westpac Package 3 year fixed (comp 6.53%)
If you are keen to fix please don’t hesitate to phone us and discuss the options.
About the Author
Since 2008, David Thomas has built a business aimed at servicing the needs of property investors, owner occupiers and small business owners. David is recognised as one of the top 10 independent mortgage brokerages in the country, David and his team have settled almost billions of dollars worth of residential and investment loans over the last decade.
Known for his straightforward, relatable style, David believes by educating people about property funding; they fare better in the market. By sharing his expertise openly, some of the people he educates will likely become his clients. It's a win-win approach.
David Thomas is a credit representative (Representative Number 506153) of BLSSA Pty Ltd, ACN 117 651 760 (Australian Credit Licence 391237).