Get locked into low rates

Now may be the time to lock yourself into a long-term low interest home loan, the Sydney Morning Herald has advised.

In a recent article, property expert David Koch lamented that many Australians are learning the hard way that picking a fixed-rate home loan is all about getting the timing right.

He pointed out that those who took on fixed home loans a year ago at nine per cent are now paying around 30 per cent more than those on variable rates, with hefty exit fees making the situation difficult to escape.

However, he pointed out that for those fortunate enough not to be locked into high rates, the coming months may be an opportune time to make the jump and take advantage of a long-term low interest home loan.

“I reckon the timing may be right midway through this year to actually get in to the fixed-rate home loan market. I know I am going to be looking at it closely in terms of my mortgage,” he said.

Many analysts are predicting that interest rates will continue to fall in the coming months, with the next Reserve Bank decision due on February 4th.ADNFCR-1761-ID-18996905-ADNFCR