Finance - Fix now or later??

The ‘Global Financial Crises’ (GFC) is a topic of conversation for most people these days and can really raise a lot of fear from people, fear of the uncertain.

With the interest rates at their lowest levels in years, the obvious question to ask is, ‘Is now a good time to lock in a fixed rate while rates are low, or have I simply missed the boat?’

The media today has finance, interest rates and the property market on their radar for hot topics, more so than ever, so it’s reasonable to say, that everyone knows a friend who is an expert on what to do with interest rates. Speculation about interest rate movements are on just about every nightly news or current affairs show, often with contradicting reports.

To be completely clear, Fixed Rates have actually risen sharply over the past 2 months, previous to this, there were fixed rates available at just 4.99% for 3 years. This has however, expired, but, there are certainly some good specials available.

There are some points to keep in mind before taking up a fixed rate;

What is the cost to fix?

What is the difference in the fixed rate in comparison to the variable amount you are currently paying? Taking this into account, should give you an indication as to whether it is a cost effective exercise?    

If you break the fixed rate, what is the cost to you? Many consumers have spent thousands of dollars in the past 12 months breaking fixed rates as they locked in their loans at over 8%.

These 3 points are all reasonable questions, ones that can be answered very quickly by speaking with a representative of the wHere ? group. Contact us today to discuss whether there is good fix rate for you that suits your long term goals.

More news from wHere its @ July edition