December began with economists predicting there will be an official interest rate rise in 2014. Here is what the experts had to say when asked ‘Is now the time to move your home mortgage from a variable to a fixed rate?
Head of Investment Strategy and Chief Economist for AMP Capital, Shane Oliver
“In short, fix for three years. The best thing to do is fix when interest rates are at a low level, right now we’re either at or close to the bottom of the rate cycle…..I think the best deals are around two to three years. I’d probably lock in around there rather than the five year rates, as they tend to be somewhat more expensive.”
Mortgage broker, Aussie Home Loans, Ross Le Quesne
“Fix for three years if you are an investor….with owner occupiers it’s different. For an owner occupier, I’d say part fixed part variable.”
Spokesperson, Mortage Choice, Jessica Darnbrough
“Rates are arguably going to rise from here…But our variable rates at the moment are so competitive, it might be the case you feel more comfortable in a variable rate….If you do need surety around your finances then now would be a good time to fix.”
The information provided in this article is of a general nature only and in no way constitutes legal or professional advice, or specific advice in relation to any finance. In all cases we recommend you receive professional financial advice for your own personal circumstances.