I’ve just recorded the latest “Should I Fix?” video following the Reserve Bank’s decision to hold rates steady. You can watch the video here.
Here’s a quick summary of the key points discussed:
Current Rates and Forecasts:
Some Fixed rates are currently lower than variable rates, making them worth considering.
Reliable forecasts predict rate drops this year, but personal circumstances should guide your decision.
Economic Context:
Rising costs and larger mortgages are causing more financial stress than in previous generations.
A drop in retail spending and consumer confidence signals potential rate reductions.
Rate Comparisons:
1-year fixed rates are slightly lower than current variable rates, though fixing may cost slightly more overall.
2-year and longer fixed terms are generally more expensive than sticking with variable rates due to anticipated rate drops.
Personal Considerations:
Fixing can provide peace of mind and stability, acting like an insurance policy against rate hikes.
Your decision should align with your financial goals and plans, such as major life events or investments.
While forecasts are helpful, they aren’t guarantees. It’s essential to consider your personal financial circumstances when deciding whether to fix or stay variable.
If you have any questions or need further assistance, feel free to reach out and we’ll be happy to help! 🙂