If you think interest rates are to go up in the future, maybe it is a good idea to fix your loan interest rate.
Fixed rates will give you some protection from unexpected rising repayments.
You can still get fixed rate loans that are cheaper than variable loans, but it looks like this situation is not going to last long. Experts predict that within a year or so, perhaps much sooner, Australian fixed mortgage rates will again be above the variable rate. Fixed rate loans usually have penalties if you want to pay them off before the agreed period. Penalty amounts will vary depending on interest rates at the time you pay off the loan (only if you pay it off earlier). |
