| 30 Years Fixing Benefits via Short Term Fixing. |
Can I fix long term – up to 30 years?
Well, technically you are not able to do that in Australia. This is because banks and other lenders operate within the short to mid term fixed rate threshold. But do not despair as there are ways of going around that. Some lenders are brave and optimistic enough to offer 12 to 15 years fixed rates.
One can achieve the benefits of a 30 fixed rate through clever planning and application of the short term fixed rate. Read on to learn how.
Is a 15 years fixed rate renewable?
Yes it is! But before you do that it is important to have some facts down. For a start you should know that re-fixing means renegotiations of the terms. Many economic factors will bound to have changed during this period of time. These cycles of changes means that at the time you choose to renew your fixed rates, the economy could either be in a boom or gloom.
How do you determine the best prevailing market rates?
The most effective way to find the best prevailing market rates is to talk to several mortgage brokers. Let them do the leg work for you by shopping for the best rates. Compile the results and do an analysis. You should let each mortgage broker know that you have been to other brokers.
We have a reputation of finding our clients the best interest rates in the market. We can find you banks that are willing to offer discount rates lower than the advertised rates.
Information on websites which offer comparative analysis of various bank are not update in real time meaning that some of the information you find on those sites might be misleading.
What makes Australian Banks Prefer short term fixed rates to long term fixed rates – 30 year?
The banks seek to mitigate the risks associated with long term lending. Fixed long term rates amplifies lenders loss factor due to the regulations governing them. The tumultuous nature of the economy which is prone to meltdown makes the institutions wary of offering long term fixed rates. Few banks are willing to go up to 15 years but none is willing to offer 20 or 30 years fixed rate http://www.homeloanexperts.com.au/fixed_rate/20_30year.php
What do I need to know before fixing my rate?
Before you fix your rates lock, stock and barrel, you should first take the following into consideration:
Do you expect a financial windfall in the near future? If your answer is yes, then fixing would not be such a good idea. This is because fixed rates are rigid and do not much room to make extra payments. Actually most fixed rates have a set annual amount which you cannot exceed without incurring charges. However there is some good news in the name of competition. Due to competition the amount differs from lender to lender. We can assist you in finding the most flexible lender who will allow you to pay up to $15000 in extra payments annually.
You can save money on fixed rates by choosing a basic package. A basic package is devoid of features like redraw and repayment holiday. These extra features attract a fee regardless of whether you use them or not.
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