Should I go for a fixed or variable interest rate on my homeloan?

Pru. Refer to my previous answer. The choice is never a simple black or white.

Hey Pru,

It all depends on what you'd like to achieve.
Best thing to do is ask yourself if you'd like to budget and know your repayments won't change. If that's the case, then go fixed.
But if you want to make additional repayments, have a little more flexibility, have features such as an offset and redraw to access any extra repayments, then go variable.

Based on the current market right now I would recommend considering a fixed or split (half fixed, half variable) option.

Best regards,
Berti Financial
1300 421 587
www.bertifinancial.com.au

Hi Pru. Good question and one that I get asked a lot. Mortgage Professionals like myself are not allowed to advise you one way or the other. Only people with Financial Advisor credentials are permitted to do so.
Fixing gives you peace of mind that repayments are set for a fixed period but you also run the risk of missing out on rate cuts if and when they happen. The other thing to consider is if you fix you cannot discharge the loan in the fixed period without paying some kind of financial penalty which varies in each instance .
I can say that banks are always looking to maximise profits and if you see an attractive fixed rate the bank has factored in that it will be profitable for them so does that mean their forecasts are for future rate cuts?
If only we knew. :)

Hi Pru

This is an extension of your previous question regarding the best product for you.

Please feel free to contact me if I can assist you in any way.

Definitely one of the toughest question to answer and as many of the other professionals have said there ia no right or wrong but it should depend highly on your personal circumstances as which strategy and method might work.

What should also be considered is how long to Fix and again this should be thoroughly thoight out and tailored to your future plans

One last thing I can add as a dual Financial Adviser and Debt specialist is there is a way to figure out a good level to Fix if you are doing a combination loan (mix of Fixed and Variable).

Hope that helps, any questions let me know.