This decision will support greater confidence amongst first and subsequent home buyers and investors at this important time and assists buyers to act with a degree of certainty as 2014 gets underway.
New Building Approvals have always been a sign of a strong economy, and add this fact to the robust auction clearance rates indicate that keeping interest rates on hold will continue to be beneficial in terms of borrowings.
If you are thinking of fixing rates, please note they come with minimal additional features.
Whilst every lender has their own variations to this as a general rule, the following are the limitations that need to be considered:
1. You can only pay an additional $10K over the fixed rate term
2. You do not have the advantage of having any savings you might have to offset the debt and minimise interest
3. Should circumstances change and you have to sell, penalties for exiting can become very expensive and the calculation of this is very complex as the banks use an ‘Economic Cost’ as a penalty
If you are thinking about fixing rates my advice is to make a time to sit down with me and discuss the best option for you.
Please feel free to contact Simon on 0411 536 809
Simon Birch, Sandridge Financial Solutions