North Mackay Real Estate - Mackay Real Estate

Fixed Or Variable Rate

Fixed rated

Should I fix my Home Loan, or should I choose a variable rate?

This is one of the most asked questions in finance. So how can you tell? What is the answer?
Is there a simple answer – no. Is it different for each client – yes.
However despite there being no magic ‘short’ answer, there are things you can consider which assist you in making the correct decision.
Have you ever wondered why a Bank decreases its fixed rates, whilst not moving their variable rates?

  • Or – Been puzzled by why fixed rates were going down, yet at the same time variable rates were going up?
  • Or – Why some fixed rates are going up and others are coming down?
  • Or – Why Banks don’t follow the Reserve Bank on interest rates.

There are a number of explanations for these events, all of which can assist you to get a better understanding of how the market works; and a better understanding leads to you making better choices about your loan – and that’s important.

Part of using a Finance Broker, is to make sure you can get a clear impartial answer to these types of questions, so you can make informed decisions regarding your finance choices.

Using a Finance Broker is not just about a loan, but it’s also about educating yourself on the workings of the market – and can all be done in simple language.
Everyone’s situation is different, so give us a call, and simply come on in and have a coffee and a chat.