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Is fixing home loans such a crazy thing?

Is fixing home loans such a crazy thing?

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Date Published : Tuesday, June 03, 2008

Fixing your home loan interest rate at the moment may sound like a crazy thing to do. With rates at a 12 year high - and with the possible prospect that they will not go down for some time - fixed rate mortgages have understandably dropped in popularity with Australians.

However, the prospect of creating certainty in uncertain times, by knowing exactly how much you will pay on your mortgage repayments every month, is appealing to many homeowners.

Fixed-rate loans accounted for 24 per cent of all the mortgages taken out during March, according to the Australian Bureau of Statistics. This is the highest figure for nearly a decade.

More and more Australians are looking to save money and play it safe.

However, homeowners will only achieve a saving with a fixed loan of interest rates keep on rising during the term of the fixed loan.

Even then, if rates continue to increase, homeowners could be in for a large shock when their fixed rate loan comes to an end, news.com.au reports.

The news provider's Nicki Bourlioufas said: "The best time to fix is before interest rates start rising. Given interest rates have already risen seven times in two years, the best time to fix is probably behind us. But that doesn't mean that you can't still save money."

However, with a lull in the rate hikes, more homeowners are taking up the fixed rate loan method, hoping to save a few precious bucks along the way.

Find and apply online for the best loan deals.ADNFCR-1411-ID-18620974-ADNFCR

 

 

 

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