It’s not the mortgage rate
Typical six month and one year rates are around 5.6% with 5 year rates at 8.6%. At 3% higher, this shows that the lenders expect a rise in mortgage rates over the next few years. But it’s not all bad news. These high rates are there partly because lenders have become very competitive, all trying to get us to use their floating and short term money.
However, the most important part of mortgages however is the STRUCTURE of the borrowing, NOT the rate and that all depends on your circumstances. Some prefer the certainty of fixed payments while others like flexibility in repayment options and the lowest short term rate possible. Part floating and part fixed is very common so you can get the best of both.
The key to saving is a competent mortgage broker or banker. Have them show you various options and explain the implications. And do NOT be guided by your neighbour! Their personal circumstances may be
Filed under: REAL ESTATE | Tagged: Real Estate