Brad Oliver Cont'd

So, should you consider a switch to fixed rate right now?

There are some attractive fixed rates on offer at the moment....for example:
1,2 and 3 years 6.39%pa
5 years 6.84%pa
Variable rates we can now get as low as 6.80%pa depending on the loan amount and LVR. Banks are now pricing for risk, so the lower your LVR, the lower the rate.
As always, the decision is different for everybody and will depend on a range of reasons like:

What rate your current lender offers or what it may cost you to refinance to a new lender that has better rates.....some of the Banks are actually offering to pay some of your refinance costs.
Do I need the flexibility of redraw, extra repayments, offset etc that a variable rate loan offers?
Would I be depressed if the variable rate ended up falling well below the rate I fixed at?
Most experts agree that the Reserve Bank will likely go into a holding pattern on rates for the rest of this year. If the overall economy doesn't show signs of improvement, then we may even see some rate cuts.
Does this mean that the variable rate could go lower than the attractive fixed rates on offer right now?....Absolutely!
All of this makes your decision even more difficult and no one can tell you what the right answer is for YOU.
As always, we are happy to discuss your own circumstance with you to help you with this decision...feel free to call or email us.
Brad Oliver CWS Lending 1300 001 297 Brad.oliver@customwealth.com.au