How much of your mortgage should you fix?

Now if I was a cynical man I’d wonder why all the bank economists are suddenly coming out and so called independently telling everyone to fix their mortgages.

The banks have been extremely competitive with each other of late and have been providing discounted rates and other incentives to retain existing clients and attract new ones, great for anyone with a mortgage or those requiring one.

By fixing the banks are locking customers into their client base which sometimes is not a good thing for clients, if for some reason you have to sell or you find yourself in a position of being able to reduce your debt or you want to rearrange your debt you could be up for significant costs.

We are not saying don’t fix but what we are saying is think carefully about the term you fix for and also how much of your mortgage you fix.

In the time you have a mortgage you are guaranteed to go through a few major life changing events, like getting married, having a family, starting a business, buying a bach, changing jobs... so, you want to make sure your home loan is structured to suit your lifestyle, with long term flexibility and short term certainty.

This is what mortgage advisers do best - focus on what you want and need, giving you the best possible home loan options and “advice”. We don't work for a bank we work for our clients - people like you. So please don’t hesitate to chat to us about your future plans and how these may be affected by fixing your mortgage long term...

CONTACT a mortgage adviser EMAIL a question

Written by Glenn Christie, Director - Mortgage People