I think that the market will start to factor in more rate rises very quickly. So don’t sit on your hands if you want to be fixed. However if you plan to fix just to save money, my predictions suggest you will end up about square on a three year fixed. And behind for the rest.
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So you will see that the interest is accrued without being charged until a certain date where it is billed all at once. This is called interest calculated daily and accrued monthly. There are four stages of a loan process when the rate may be locked in: Beware that sometimes there is a (rate lock) fee to lock in your fixed rate, rather than only having the rate locked in at settlement. The questions to ask if you want to take up a lenders rate lock option include the following: There are times when a lender will not allow you to take a fixed rate home loan. Often when the full funds will not be drawn straight away, or when the lending is regarded as higher risk. The IMF has increased their expectations of Australian economic growth. I think this will filter through to higher interest rates in the 2 to 4 year term. I think there will be a slowdown in about five years from now, due to the timing of the next US election – so my five year is a bit lower than my four year. Here are some questions to ask yourself if you are considering fixing. . . |
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