In a world of increasing change and volatility, ensuring your home loan meets your personal objectives and achieves your financial goals is vital.
For many, a home loan is the costliest and largest financial decision of their life.
Whatever your chosen home loan product, it is important to ensure your home loan is working for you and not against you.
The importance and benefits of having a financial plan to help your family navigate turbulent times and adapt to uncertain economic conditions has never been clearer.
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Fixed rate home loans: why fix my interest rate?
A fixed rate home loan allows you to set your interest rate for a fixed period of time.
This type of strategy provides peace-of-mind during the fixed rate home loan period because it:
- Gives you the confidence to budget accurately and plan your family’s finances.
- Removes the worry and uncertainty caused by changing market conditions.
- Means you will know exactly what your repayments will be.
- Set family goals e.g. holiday.
Choosing a fixed rate home loan should be based on your own individual needs such as:
- You dislike the thought of interest rates increasing i.e. risk averse.
- If interest rates increase, the negative impact on your financial situation and personal goals could be high.
To help your family review and discuss your home loan strategy options, we have prepared a Fixed Rate Strategy Guide. Download your Fixed Rate Strategy Guide here.
Handle with care
You should always consider the option of a fixed rate home loan.
However, don’t speculate on future interest rate movements or using fixed rate home loans to ‘beat’ the market.
Interest rate movements are hard to predict for even the most experienced economists.
Some features of fixed rate home loans are not as flexible as others and do have some limitations. If unsure of your future circumstances, it may be prudent to defer using a fixed rate home loan.
A simple conversation with an experienced, accredited home loan expert could improve your lifestyle and wealth at the same time.
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Summary
So what does the future hold?
There’s an old saying that the only constant is change.
At Loan Avenue, our focus has been to embrace change and use the opportunity to innovate and adapt new home loan products and services, to help families improve their financial position and get ahead sooner.
Dealing with a specialist non-bank lender during times of uncertainty is beneficial to ensure you are aware of all your options in a timely manner and receive personalised financial guidance as to the right tailored financial strategy.
In a climate of so much uncertainty, fixed rate home loans are an increasingly attractive option to smart borrowers who are in control of their financial position and can plan for their family’s future with confidence.
Let us show you. To make an appointment with one of our experienced and accredited finance professionals call 1300 56 26 28 today or leave a message here.
