Should I Fix My Home Loan? Sunshine Coast Mortgage Brokers - Nicky Orchard

Interest Rates Australia – Should I Fix My Home Loan?

We’ve received a high volume of phone calls over the last few weeks from our clients wanting to know more about rising interest rates.

Should I Fix My Home Loan Interest Rate 2022?

Fixed Interest rates were historically low in 2021.

While it may sound OR seem like a good idea to fix your rate in 2022, it’s not a one size fits all situation.  At the moment, the interest rate on your home loan might be around 2.5%.

But if you fix your rate, you’ll likely end up paying at a higher rate than the current variable rate.

We are seeing a number of our clients doing the following:

  1. Staying on a variable rate; and
  2. Making repayments as if they were on a fixed rate, which allows our clients to build up their home equity.

While some predictions might be grim, there are so many factors (like the Ukraine war), influencing interest rates.

At Orchard Financial Group, we feel it would be a mistake to make your decision based on some analysts’ predictions and the current media hype.

💡 Remember that at the end of the day, nobody knows what will happen and how fast and how far the interest rates will go up if they do.


Speak With Nicky Orchard Phone (07) 5475 4500

If I Don’t Fix My Home Loan, What Should I Do?

Should I Pay More Off My Mortgage?

It depends.

Depending on your situation and only if you can afford to, you should always strive to pay extra off your home loan.

Whether it be $50 or $100 a week more, paying extra will allow you to prepare for higher interest rates.

After all, if you’re paying more every week or month, you’re already paying as if you were paying a higher rate.


Our Golden Bit of Financial Advice to All Clients is …

Make A Budget

Another thing you should do is draft a budget.

The idea is to know exactly how much you need every week or month to live and how much extra money you have to spare to throw at your mortgage.

Look at where you’re spending money and see how you can save. For instance, if you love having two or three lattes a day, cut down to one latte a day.

Every little thing counts!

Should I Change My Home Loan or Refinance?

As a rule of thumb, you should be reviewing your mortgage twice a year.

Once at the end of the financial year and once at the end of the calendar year. You should also contact us to enquire about your rate and whether your interest rate is competitive.

Doing a financial health check twice a year is a sensible way to stay ahead of your home loan and protect yourself from bad surprises.

How Can Orchard Financial Group Help You?

Do you need help comparing different lenders and interest rates ? Perhaps you are thinking about refinance?

At Orchard Financial Group, we pride ourselves on taking time listening to our clients and what they need. And that’s why we’re committed to helping our clients as much as we possibly can.

So, if you’re worried about potential interest rate increases in the future and want to discuss what it means for your home loan and how to prepare, book a “no obligation” 30-minute appointment with Nicky Orchard. Working with a professional like Nicky Orchard, who has 26 years in the finance industry, could help your feel financially confident.

Licensing statements: Credit Representative Nicky Orchard CA25559 is authorised under Australian Credit License 389328 General disclaimer: Your full financial situation would need to be reviewed prior to acceptance of any offer or product

💡 Remember that at the end of the day, nobody knows what will happen and how fast and how far the interest rates will go up if they do.


Speak With Nicky Orchard Phone (07) 5475 4500

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