With interest rates at an all time low, most home buyers are asking
the tough question "should I fix my loan or not?"
Increasing interest rates can have a major impact on your lifestyle.
And because of this, you should consider your future plans, budget
and financial flexibility when deciding on whether to fix your loan
or not.
Fixed rate home
loans at Macarthur
allow you to lock-in an interest rate for a certain period of time.
The most popular term ranges from one to five years. During this
period, your interest rates and monthly repayments remain the same
whether the lenders change their interest rate rises or not. At the
end of the fixed term, you have the option to fix the loan again or
switch to a variable rate loan option. Whether you are new into the
home buying business or out to buy a second home or property, the
time could be right to go with a fixed rate home loan. Fixing your
home loan rate is a way of managing risk. If increasing interest
rates would have a significant impact on your ability to repay your
loan then fixing your rate makes significant sense.
However, before making such a big decision of choosing to fix your
home
loans in Sydney, there are several factors you
need to consider. First of you need to shop around for a lender who
will offer some flexibility and you also need to ask yourself and
maybe get some advice on how things may turn out three years or five
years from the time you are considering fixing your loan. Do you love
certainty? The main advantage of fixed rate home loans is the fact
that you can sleep better at night and even plan ahead because you
already know what your monthly obligations are.
