Home Loans Australia

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With rising interest rates, should you fix your mortgage?

Fixed-rate mortgages become more popular as borrowers rush to lock in low rates.

According to recent data* approximately 1/5th of borrowers are choosing fixed rate mortgages. This trend is likely a direct response to out-of-cycle rate hikes by the big banks.

Deciding whether to go with a fixed rate or a variable rate mortgage is a question of security versus flexibility. One is not necessarily better than the other because home loan requirements are highly individualised.

Here’s How You Do It:

Step 1: Select your type of property below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.

Mortgages are varied, so it’s wise to compare offers on the market before committing to any one type of loan. The online service HomeLoansAustralia.com makes it easy to compare so you can be confident when it comes to selecting a lender.

The service takes the stress out of choosing a home loan by providing a free, personalised rate report. You can also have an informal chat over the phone with a mortgage expert about how to structure your loan based on your needs.

Despite the rising popularity of fixed loans, variable loans remain the most popular in Australia because they allow for greater flexibility. That doesn’t necessarily mean that variable loans are better. In fact, many people opt to divide their loan up so it is part fixed and part variable.

Here are a few features of fixed and variable loans to help you gauge which might be best for your situation:

Variable loan:

  • Interest rate fluctuates in accordance with market rates
  • Increased flexibility such as no-fee extra repayments
  • More features, including offset accounts and redraw facility

Fixed loan:

  • Lock in an interest rate for a set period of time
  • Fees may apply if you pay off the loan early or wish to make extra payments
  • Redraw facilities may not be offered

Your advisor at Home Loans Australia will be able to explain the loan types in more detail, so you can decide which type of loan you prefer. Once you are ready to go forward with your new mortgage, they’ll walk you through the process and even handle the paperwork on your behalf.

With so many home loan options on the market, you have a good chance of finding one that works for you when you use HomeLoansAustralia.com. Get started today to take advantage of the interest rates before they climb even higher. Now is a great time to find an affordable home loan, and it’s never been easier.

Get Started Now:

Step 1: Select your state below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.

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