With interest rates at an allow time low, many Australians are asking the tough questions: "Is now the best time to lock-in my home loan rates?" While we don't have a chrystal ball to forecast where interest rates are headed, we do have a product that can give you the financial flexibility to decide when to fix your home loan rates and when to stay variable.
Interest Rate Fluctuations
Boom time conditions for the Sydney property market is well and truly over, with house prices reportedly slowing to 2.2 per cent this year according to forecasts by CoreLogic and Moody's Analytics.
Meanwhile the Reserve Bank of Australia has firmly shrugged off global currency instability and has firmly kept the official interest rate at 2 per cent. Most economists forecast a further reduction in interest rates later this year.
Time to Lock in your Rates and Save
Present market conditions are an incentive for borrowers to fix their mortgage. Robert Projeski, founder of Australian Mortgage Options and property expert says that people should consider fixing their mortgages to ensure they lock in at a time the rates are near their lowest.
Projeski says people with a fixed mortgage have added piece of mind if they decide to change their life circumstances.
“Many life decisions will have a bearing on an individual or family’s finances,” Robert said. “This could be major decisions such as having children, reverting to part time work or even planning their investments.”
AMO's Future Proof Home Loan
Australian Mortgage Options have introduced a first for the Australian homebuyer. The company has created a Future Proof Home Loan which is purpose built for those who are looking ahead. The loan allows borrowers to switch between fixed and variable according to market fluctuations.
The Future Proof Home Loan gives borrower’s peace of mind about their loan repayments by insulating them and their mortgage against future interest rate rises. This amazing home loan solution allows borrowers who qualify to frequently switch between a fixed and variable rate in order to pay the lowest interest. If the variable rate rises above the fixed rate, you can switch to fixed. Then if it drops again, you can switch back to the lower variable rate. It is much better than a traditional loan, as up to 100% of your loan is always charged at the lower of the two rates.
Mr Projeski goes on to say that smart money investors have thus far been very keen on this product as it helps them with budgeting for the short to medium term.
“This product is designed with all Australians in mind. It gives people certainty for their future,” Projeski continued.
“We allow borrowers the option of fixed, variable, or split and now a Future Proof Honeymoon for those that qualify. This is a great ingredient for the savvy home buyer or investor."