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There are a few decisions you will have to make after securing a mortgage. One of them will be to fix or not to fix. You can decide upon a fixed interest rate, which will lock you into the rate for a set period of time, or you could opt for a variable rate, which could vary month to month.
A fixed interest rate will mean you are locked into a certain rate for a period of time (usually 1, 3, or 5 years). At the end of the fixed period, your loan will change to the standard variable interest rate of your lender.
With a variable rate loan, your interest rate will mirror market interest rates, meaning the rates will change during the life of your loan.
Choosing which rate to opt for can be challenging, but remember that there are pros and cons to whichever you choose, and you do have the option to choose the term of a fixed rate loan. So decide which aspects are important to you, and go from there! A third option is to split your loan, and sign up for a half variable, half fixed rate loan. You can usually split the loan however you like, whether that be 50/50 or otherwise. This can be a good option if you aren't sure which loan is for you.
Beyond Debt is a trading name of DCS Group Aust Pty Ltd. Australian Credit License: 382607. RDAA Number: 1126. PO Box 3074 Newstead, QLD, 4006.
DCS Group operates under a Limited Liability scheme approved under Professional Standards Legislation
