Fixed or Variable Rate?

Mortgage Brokers help you into your new home

Should I fix my Home Loan, or should I choose a variable rate?

This is one of the most asked questions in finance.  So how can you tell? What is the answer?

Is there a simple answer – no.  Is it different for each client – yes.

However despite there being no magic ‘short’ answer,  there are things you can consider which assist you in making the correct decision.

Have you ever wondered why a Bank decreases its fixed rates, whilst not moving their variable rates?

  • Or – Been puzzled by why fixed rates were going down, yet at the same time variable rates were going up?
  • Or – Why some fixed rates are going up and others are coming down?
  • Or – Non-plussed by why Banks don’t follow the Reserve Bank on interest rates.

There are a number of explanations for these events,  all of which can assist you to get a better understanding of how the market works;  and a better understanding leads to you making better choices about your loan – and that’s important.

Why a finance broker is better

Part of using a Finance Broker,  is to make sure you can get a clear impartial answer to these types of questions, so you can make informed decisions regarding your finance choices.

Using a Finance Broker is not just about a loan,  but its also about educating yourself on the workings of the market – and can all be done in simple language.

I’d seriously suggest you give us a call on 8350 4227, and simply have a coffee and chat with one of our Lending Managers,  all of whom are great listeners and educators;  and each have over 30 years of experience in the finance industry.