For the last few years, we have been advising people to fix their home loans for shorter loan terms to take advantage of the downward trending interest rates, but it looks like we might be nearly at the bottom of the low-rates curve. There is no way to know what the curve will look like until we have some distance from it, but in our opinion (and plenty of other experts) all signs point to rates making an upward shift in the coming months.
We think that a 2 year fixed term is very middle of the road between long and short term, and like everything has its pros and cons. Long-term fixing starts to head toward looking at those 3 to 5 year rates – which is a decent amount of time, but does provide that stability and advantage of a low rate being locked in through an upward shift. Check out this video if you want to hear a little more about the pros and cons that go alongside short-term and long-time fixes.
Our general view is that of moving toward long-term fixing, but we are also aware that doing so can be counterproductive in certain situations and want to make sure that we are having conversations that are custom fit to where you are at and what you want out of the next 5 years.
If you are in a position where you think fixing for longer term might be something that works for you – then it might be right time to chat about what that might look like. We are always happy to spend some time with you working out the best plan for you and your home loan as we move forward into the coming months.
Touch base with Adam, Greg, Claire or Amber from My Mortgage for the best and most up to date advice around what is right for you regarding interest rates.