FF - long or short NR header

Pivotal Financial General Manager, Matthew Andrews, comments.

With predictions around what is likely going to happen with interest rates now mixed (some are predicting it might be early to mid year before we see much change in interest rates) There are economists who are now suggesting it would be smart to take a twelve month fixed mortgage rate. The argument is: Fix short and get the good rate and then have another piece of the pie before rates rise.

So, what is my opinion?

Rates have been low for some considerable time and the only thing certain about interest rates is that what goes down ultimately goes back up again. The million dollar question is when?

I am somewhat conservative in my outlook and there are still excellent rates obtainable (below 5%) for fixed terms of up to say 3 years.

Fixing for longer provides stability and it enables one to budget better for longer. I would personally take advantage of that. It’s not just about chasing rate.

If in doubt the other smart alternative is to mix it up a bit. Nothing quite like taking 50 cents each way.

There is no right or wrong answer.

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Posted in Uncategorized on 6 Apr, 2018 | Comments Off on MORTGAGE BORROWING STRATEGY