The decision last week by the Reserve Bank to leave official interest rates on hold yet again would have as no great surprise to anyone. However, it seems that as each month passes, more home owners (and those who want to become one) are turning their attention to the question, “Is now the right time to lock in a fixed rate home loan?”
Fixed rate enquiries increasing
Here at Dreamstreet Lending, our Advisors have noticed an increase in the quantity of enquiries from people asking about fixed rate loans. In fact, figures indicate that enquiries on this type of home loan are up about 50% on the same time last year. But that doesn’t mean that it’s the right product for everyone.
Variable loans still No.1
Despite the increasing enquiries on fixed interest loans, it is worth remembering that more than 80% of all home loans approved last quarter were still on variable rates, and there are a couple of reasons for this.
First and foremost, there are still a number of deals available to clients of Dreamstreet that provide interest rates below those available on fixed rate products. These loans are available at rates that are below many of the more publicised loan products, so it is well worth making a call to find out what is possible.
Secondly, there is still an expectation in some sections of the finance market that the Reserve Bank could still drop official interest rates even further before the year is out. So some home owners are adopting a “wait and see” strategy by maintaining their existing loans.
A strategy for the future
No matter whether you think interest rates will fall, maintain their current levels or even rise in the future, the key strategy to making the most of your home loan is to stay in touch with your Mortgage Advisor so that you are in the best position should rates change.
So if you would like to discuss what your options are, or whether now is the right time to update your home loan to make the most of one of the current great deals, why not give Dreamstreet Lending a call today on 1300 230 240…What have you got to lose, apart from a couple of minutes?
- 12 Apr, 2016