Should you fix rates on your mortage?
Welcome back!
Well do you think you should fix your mortgage now? Well with interest rates near the low point in the cycle then it could be the perfect time to fix your mortgage.
Traditionally when the economic talk is still negative and the rumours in the market are for the RBA to make further cuts it is almost perfect time to lock in rates. The markets have all kicked higher with the hope of the economy recovering through 2009 but home owners should not wait till the economy improves as the RBA will but trying to slow the rapid growth that low interest rates will generate.
While interest rates are still low by historical standards it’s hard to imagine they will be at or near similar levels in two years time as the economy is likely to be back in full gear by then.
If your happy to take your chances and ride the cycles stick with the variable rate but if you want any mortgage certainty consider locking in now. Remember it has been along time since the official cash rate was anywhere near current levels.
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