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My bank said they are increasing their fixed rates. Should I lock in now or are there other lenders who will not be raising fixed rates that i should approach?
Responses
Hi Forbes. Thank you for your question. The question in regards to you locking in your rate entirely depends on your personal circumstances and not something any Broker should advise on unless they have had a chat to you about your plans NOW AND IN THE FUTURE. Historically Banks do tend to 'follow the leader' where rates are concerned however have different starting points. Have a chat to your Bank or give me a call if you want to discuss your situation. hope this helps.
Forbes, it does depend on your individual circumstances and your plans for the future plus you could also look at splitting your loan into part fixed and part variable to have certainty of repayments and flexibility in paying off your loan with extra payments...so best to have a broker review your needs and then give you alternatives that you can choose to best suit you...Give me a call for free discussion
The choice is yours but with rates from 3.63% 2 or 3 years fixed - now is s good time to consider fixing. I can prove your options.
A really important discussion to have with your broker or financial institution is about Rate Lock. This is a fee you can pay to ensure you lock the rate and immunise yourself from any rate increases between application and settlement.
A hunch would be; if a lot of them have pushed them up due to upward pressure in swap rates, it may be a matter of time until the other ones move too. That's not suggesting that will happen. Just that it might, and it would be prudent to think about it.