With fixed rates getting lower and lower it may be a great time to talk to your mortgage broker and see if you can get a better deal. There are a few important things to remember when looking at fixed rates:
1. fixed rates are great if you would like certainty in your repayments for a given period of time but if you want to pay your loan off quickly and wish to make extra repayments you need to careful. Penalties may apply
2. paying off a fixed rate loan before the expiry of the fixed terms may be costly and penalty costs apply
3. more often than not it is wise to have a split loan. This means part fixed part variable.This lowers your average cost of funds and allows you to ay off the variable portion faster.
Contact your melbourne mortgage broker What If We Finance to find out more.