By Dave Lamari
 
Recently I have had many a question asked on whether it is best to fix or go variable.

Earlier in the year this was a little easier to answer as rates were still relatively low on both fixed and variable.

Recently the variable rates have started moving up of the most recent Reserve Bank decision and their ‘rhetoric’ is definitely along the lines that it will increase even further.
 
Fixed rates on the other hand have actually been moving upward for a few months now and it is safe to say they will continue in line with the trend of the variable.
 
In short this means, similar to what I say to most clients for some time. If you wish to budget and be sure you will know what your repayments are, on a particular loan size, fixing is the only way to be sure.

That is, fix to budget, try not to fix to beat banks at rate rises.

Perhaps a split loan (part fixed and part variable) will give you the combination of the flexibility of a variable and the security of a fixed.

If you have any questions on fixed or variable home loans, please give me a call...  (07) 4723 8077