Are you satisfied with your current variable rate home loan? If you’re not, call Smartline Rockingham and let us give your loan a “checkup.” We can “run the numbers” for you and help you figure out whether it’s better to keep your current loan or refinance your home for a more advantageous fixed rate.

Why are Variable Rates Rising in the Face of a Record Low RBA Cash Interest Rate?

In October 2015, the banks took it upon themselves to raise variable rate loans. They cited tighter regulations and uncertainty over what the RBA would do in 2016 as their reasoning. Whether or not you agree with their policies, the bottom line is that it affects your bottom line.

Here are some ways you can benefit from a fixed rate loan.

Try a Split Loan

Due to a competitive market for fixed rates, a lot of people are “hedging their bets” by opting for split loans. There are many benefits to a split loan that we can tell you about in person or over the phone.

Look at the Features: Not Just the Rate

While the rate is a very important part of a home loan, there are many features that can be nearly as important. For example, some fixed rate loans allow you to pay extra when you have extra money, reducing the amount of interest you pay. Some loans offer an offset account, which reduces the amount on which you pay interest by the amount you have in the offset account.

Stay Committed

If you do sign for a fixed rate, you have to keep that rate for the entire term, for example, three years. Fixed rate loans usually have very high break costs, so make sure you’re happy with the original numbers.

Shop at the End of the Term

Once your fixed rate is over, your loan could revert to variable terms that aren’t all that great for you. It can be to your advantage to find another fixed rate.

Thinking About Getting a Home Loan?

To learn more, call us today: (08) 9527 1800.