Fixing mortgage rates 'is a good risk management strategy'

Aussies looking to take out home loans may be able to benefit from opting for a package that offers a fixed rate of interest.

Several financial institutions, including Westpac and ANZ, have forecast that the Reserve Bank of Australia is likely to raise interest rates again later this year.

With this in mind, customers looking for home loans may be able to protect themselves from future increases by taking out a fixed-rate mortgage, stated.

Medine Simmons, director of MF Simmons Mortgage Broking, told the publication that these deals are a great way of managing the risk of interest rate rises.

She suggested that those who do not wish to fix their entire mortgage into such a system just do this with half their loan, while keeping the other half on a variable rate so they may benefit if rates fall at a later date.

"If you're a bit nervous about your loan, fixing part of it is a great way to manage risk and start feeling comfortable about the repayments," the expert added.

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