Split Mortgages
You'll never be 100% wrong with a split mortgage
Up or down? Now could be the right time to hedge your bet and split your home loan. While economists are still undecided on interest rate movements in the future, confusion reigns for home loan borrowers. The good news is that fixed interest rates on many mortgages have been steadily decreasing since last November of 2006. Since the beginning of March, RateCity has tracked 51 loans that dropped their fixed interest rates. On the other hand, 29 mortgages reported increased fixed rates over the past month so it's a mixed picture.
On balance fixed rate loans are becoming more popular these days. In fact, fixed rate home loans have recently overtaken Basic Variable Loans to become the second most popular type of home loan in Australia. The most popular type remains the Standard Variable Home Loan.
So is it the right time to fix your home loan? It could be. But one thing is certain. By splitting your home loan repayments into fixed and variable rate components you will never be 100% wrong.
Splitting your home loan enables you to hedge your bet by guaranteeing that a portion of your repayments will remain fixed if variable rates rise. Fixing part of your home loan also helps with budgeting and this can be an important strategy for many home owners. However - just to make matters more confusing - if you fix today you might miss out on lower fixed rates tomorrow. That's always going to be the risk a home loan borrower faces.
RateCity has 871 home loans listed that allow a split loan option. For further value for money you should look for products that have received a CANNEX 5 Star Rating.
Did you know you can search for 5 star rated Home Loans at RateCity?
To search out the best value home loan, you need to consider a number of factors including fixed and variable interest rates, redraw facilities, offset accounts, ongoing fees, early repayment penalties and many other features. RateCity does your homework for you, by providing home loan star ratings developed by CANNEX, Australia's leading financial research and ratings firm. CANNEX experts have analysed and evaluated hundreds of features to give the full five star ratings to only the very top 5% of Australia's 2,000 home loans.
You can find the very best home loans by searching through RateCity's large warehouse of products.
How do I compare home loans?
Home loan comparison on RateCity is easy. Over 2,000 home loans can be compared using our easy search tools.
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