HLIR020 The variables of a variable home loan (460 words)

Is fixing your home loan interest rate the right move for you? This article explains the implications to be considered before jumping in and fixing your rate. Recommendations to seek professional advice from a mortgage broker are included.

Australians have enjoyed record low home loan rates for around a decade now, so for many of us, a mortgage has been a set-and-forget proposition.

Recently though, the Reserve Bank of Australia (RBA) has increased interest rates. This has prompted many borrowers to convert to a fixed rate loan without properly revising their current situation.

A typical mortgage has a variable interest rate which fluctuates up or down with interest rate movements. Accordingly, your payments go up and down too.