Interest rates are unlikely to get much lower – now may be time to lock in the gains by fixing all or part of your loan.
The Reserve Bank has said that it is in no rush to drop rates again.
While some, but not all economists think there is one more rate drop to take place, no-one is expecting variable rates to drop much more.
Based on this, C&N clients may want to fix part of their loans to lock in these rate cuts and to have some certainty of their repayments.
The big banks will let you fix for up to 10 year periods, but most borrowers like to fix for periods 3-5 years. Things can change rapidly, and rates could be much higher by 2020. Here are some examples of how things have changed over the past four years…..
- Pope Benedict was in the Vatican
- Michael Schumacher was racing Formula 1
- Gangnam Style becomes the most viewed youtube video
- Julia Gillard was Prime Minister
The world changes quickly. If you want certainty, now may be a time to fix
Disclaimer: This article contains general information. Before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs.