Fixed or Variable or Interest Only Home Loan. What you Suggest

[byrash]

Was wondering what would the right bet in choosing the right interest or home loan option ? What among fixed or variable or Interest only would be a better option with the current market trend?

 

Please suggest

[Andrew from Vista Financial]

Did you know it is possible to hedge your bets and take the best of both worlds by splitting the loan.

 

The split could be done on say a 50/50 basis, so a loan of $400,000 for example could have $200,000 on variable and $200,000 on fixed!

 

Andy

[byrash]

yeah.. I knew this option but was hearing many words from blues that interest rates will sink down further and was not 100% sure what would be the right choice at this market juncture.

[NicF]

The right choice is the option that works best for you. No one really knows what will happen with interest rates. Even if the Reserve bank drop interest rates there is no guarentee that mortgage providers will drop interest rates. Personally I like my variable rate loan because I can pay it off faster and offset against interest. Other people prefer fixed rate loans because they know what they will be paying each month for a set amount of time. Sometimes shopping around and changing your mortgage provider can give you large savings, but you have to factor in the costs of getting out of your existing mortgage and the costs of setting up a new one.

 

If you are looking for a mortgage I would suggest giving Andrew a call and going through your circumstances and see what he can advise would work best for you. I can personally highly recommend Andrew (and Stacey) at Vista.

[Lazy Cow]

We've spread our mortgage over two; one 3-year fixed, one variable for the reasons NicF gave.

 

i stayed with the same mortgage company because they didn't charge for the change (we were a couple of years out of our last contract with them) and they offered a 4.something% fixed rate. That said, the new repayment seems to work out the same as we pay currently.....

 

I think perhaps I should've asked Vista, too!