Your questions answered by an industry expert
Should I fix my interest rate?
There is talk of another interest rate rise, possibly as early as November. I'm trying to work out whether I should fix my home loan interest rates. What do you think?
I can't answer this for you as I don't know your circumstances but I can give you a few thoughts that might help you answer your own question. Go to websites such as Cannex or Infochoice and see what rates are on offer and compare your current variable rate with other variables to see if you are actually on a good rate.Next compare these rates to the best fixed rates. You have to work out if you should fix for two or three years and that's a bit of a gamble. I wouldn't fix for five years - you do that when rates are at the bottom of the cycle. We're now near the top. Some economists see one more 0.25% rise ahead while a minority think they see two more!
Our next inflation number is out on 24 October and that should tell us if another rise is close. If the September quarter rise is close to 0.9% then we could see a rate rise quite soon. If it is say 0.6-0.7%, we could be safe until the next inflation number.
By the way, by trying a number of banks and visiting a mortgage broker you might find you can secure a lower variable rate.
Copyright © 2009 Yahoo!7 Pty Limited. All rights reserved.
Advertise with Us - Privacy Policy - Terms of Service - Help