Hi, same question as last year. The RBA hasn't made any changes for 12 months or more so do people expect there to be some movement in 2018 and is now a good time to consider fixed rate options?

Hi Jacob,
What will happen with rates is still anyones guess, however whether you should fix is an entirely personal question.
The US has increased their official rate overnight for the third time this year bringing their rate to 1.25%. It is widely expected that they will raise up to 3 times again next year as well. It appears likely that we will see one increase or possibly two in 2018 - this is a guess of course!
A number of my clients have started splitting loans with a significant amount fixed and a smaller amount variable to take advantage of Offset accounts and the slightly lower rate.
I would recommend that you sit with a good broker who can discuss your cash flow needs and offer you some options that will give you the greatest peace of mind
Best of luck
Regards
Scott

Hi Jacob,

Lots of commentary around along the lines of ‘will there be a movement next year’ not much ‘when there will be one next year’.

I’m of the view that we aren’t going to see rates move any time soon. When the time comes that rates do move it’s going to be a long slow process of moving them up.

Household debt is so high at the moment that any sudden large movements up in interest rates would cripple the economy.

Reach out to one of the mortgage brokers on here to find out where fixed rates are currently at.

Regards
James

Jacob, Hi. As mentioned in the above answers, whether fixing is right for your situation is best given following an analysis of your needs and objectives. I would be happy to provide some advice on what rates are available and assist you with any scenario analysis around break even points of making any change etc.
To do this, I would need to have a little information on your situation, therefore should you wish to make contact I could begin working on a potential solution.

Best Regards
Ken Olds
Customers First Mortgages & Insurance
1300 ASK KEN (275 536)

Hi Jacob,

I've just done a blog post with my annual predictions for 2018. Link below:

https://www.simplyaskit.com.au/profile/2188/tim-russell/blog/121/whats-ahead-for-commercial-finance-in-2018

Experts like AMP Capital's Head Economist Shane Oliver are expected rates to remain unchanged till the end of the year at the very earliest.

But when it comes to rates, experts are only really guessing. The only thing you need to ask yourself is, "If rates were to increase, would I be struggling?" If the answer is yes, then it's something you need to consider.

I've got a one minute video on this topic which I think you'll find useful - https://youtu.be/Io8pnNr_D48.

Kind regards,

Tim Russell
Multipart Finance
0400 530 868
tim@multipartfinance.com.au