In an unstable property market where the decision to switch from a variable to a fixed interest rate home loan may seem attractive, borrowers should take a few important factors into account before deciding. These factors relate to:
- the different features associated with fixed and variable interest rate loans
- the future direction of home loan interest rates, and
- the cost of switching.
This article starts off with a brief overview of the three types of home loans, namely variable, fixed and combination. It explains their pros and cons, and provides an overview of what's happening with interest rates.
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now