Financial stability: Commit to a fixed rate home loan today
Stability is one of the cornerstones of life. Being able to rely on some constant, unchanging aspects is part of how we cope with what the world throws at us. So why can't this extend to our financial commitments?
Luckily there is a home loan option perfect for those who prefer organisation to unpredictability. If you're interested in purchasing property in the near future, it could be worth investigating a fixed rate mortgage for your endeavours.
Unlike a variable rate home loan, having a fixed rate means you can secure an interest rate for a period of time, which will remain unaffected and unchanged by the various fluctuations in the economic market.
This can be extremely useful as you can tether your repayments to a certain fixed amount. By knowing exactly how much interest you will be charged, you eliminate the potentially-haphazard guessing involved.
This stability can be welcomed by young families or newlywed couples – anyone with limited financial range and a keen sense to keep their heads above the water through careful budgeting and hawk-eyed maintenance of money.
Now could be a brilliant time to secure a fixed rate home loan. The Reserve Bank of Australia lowered the official cash rate to the historically low level of 2.5 per cent last year, which resulted in dropping interest rates across the nation.
Get in quick to secure a reduce interest rate for a fixed period on your home loan to avoid missing out in the long run.