In this episode, Tim from Nexus Money discusses the choice between fixed and variable rate loans in the current market.
Tim explains that most people are choosing variable rate loans because they tend to be cheaper and provide more flexibility. Variable rates allow borrowers to make extra repayments and often come with features like offset accounts that can save on interest over time.
Some people are choosing fixed rate loans for the security and structure they provide. Tim also notes that many people who have previously had fixed rate loans are choosing not to refinance at higher rates, likely because of uncertainty about the future.
Overall, the decision between fixed and variable rate loans comes down to individual circumstances and the ability to make repayments if interest rates increase. Tim recommends speaking with a mortgage broker to understand your options.
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Considering your finance options for a Brisbane investment property? Talk to Pure Real Estate’s team about our property management services alongside your financial planning.