Insider Tips

As you would expect there is no “One Right Answer” that can apply to everyone’s personal circumstances and strategies however there are several basic “Pro’s and Con’s” and “Handy Hints” that you need to know before you can determine the “Right Decision for You”.

Fixed Interest Rates

Advantages

1. Safe from rising interest rates
2. Guaranteed loan repayments
3. Record low rates

Disadvantages

1. Additional repayments limited
2. No / Limited Redraw
3. Break Costs may apply if loan is repaid (Full or Part)

Variable Interest Rates

Advantages

1. Save $$$ if Interest Rates fall
2. Additional repayments –  No limits
3. Redraw
4. 100% Offset Account (if available)
5. Can switch to a fixed interest rate at any time

Disadvantages

1.  Interest Rates can rise

Handy Hints:

1. Achieve the benefits of each rate type by selecting a combination of both (i.e. Part Fixed + Part Variable) 
2. Select a Fixed Rate term that does not exceed your known plans (i.e. Avoid paying Break Fees)
3. Seek “FREE” advice from an experienced Mortgage Specialist … One 5 minute chat can save you THOUSANDS $$$

All clients of DPF Mortgage Specialists are eligible to receive advice from our licenced Mortgage Specialists AT NO COST.

Simply click on “CONTACT US” or phone (07) 5527 4744

BREAKING NEWS … No Change to Interest Rates

5th March 2013 –

Following today’s Board Meeting the Reserve Bank has elected to retain the Official Cash Rate at the current level (3%). This decision was widely anticipated considering the recent financial data confirming improvements in the domestic economy combined with an increasing sense of stability in the USA and European Economies.

The Reserve Bank is prepared to reduce rates further during 2013 if / when this action is required however the decision to keep rates on hold during March is supported by most Senior Economists.

The Reserve Bank of Australia has confirmed the predictions of many senior economists by announcing that the Official Cash Rate will be retained at the current level of 3% throughout February 2013.

This announcement follows the publishing of positive reports from the Australian Real Estate and Building Industries + a renewed optimism in the US and European economies. With an Official Cash Rate of 3% the RBA retains the ability to reduce interest rates in the future if the Australian economy needs additional stimulus.

One of the most common questions asked by Home Loan customers is whether they would be better served with a Fixed Interest Rate or a Variable Interest Rate.

The first step to seeking an accurate answer to this question is to understand that each borrower / family have differing financial requirements and priorities thus there can be no “One Right Answer” that will apply to all.

Listed below is a brief summary of the Advantages & Disadvantages of Variable & Fixed Interest Rates plus several Insider Tips which may assist you to determine the best Home Loan structure to suit you and your family. Read more