RateCity
Savings For Home Owners
There could be some signification savings for home owners just by fixing your home loan. However this depends on a number of factors, so before you fix you should consider the following:
- In general fixed rates are higher than variable rate home loans because you are paying for the security of having a stable rate as well as consistent repayments. However, when the gap between fixed and variable rates closes in, it could mean that you could save more if you were to opt for a fixed rate rather than a variable.
- If interest rates are low and you think that interest rates may rise in the future, by fixing your mortgage you could save more. For example with a $300,000 mortgage at an average three-year fixed rate of 7.64 percent, if the average standard variable rate of 7.06 percent increases by just 1 percent over the next two years, you could potentially save $1200 by locking it in for three-years.
