Major banks short-term rates have been quite low recently and it can be easy to get swayed by what appears to be cheap rates e.g. 4.35% 1-year specials. It’s not unusual for banks to be aggressive on rates at busy house buying seasons. Even HSBC specials well below market come with conditions hidden in the fine print. Is it best to hang your mortgage decision on just one rate term?
Our advice is to hedge your bets—it’s always best to minimise your risk and structure your mortgage debt in smaller loans, over different terms i.e. 1-year, 2-years, 3-years. Also, consider other important factors such as your short and long-term plans, how a particular bank suits your needs and and financial plans.
It’s best to think of your own personal circumstances and needs when thinking about rates and structure. We can look at competitive rates across all banks and see what they are offering to the market behind the scenes. The best rates are not always advertised! In a few cases, we have negotiated lower than the specials advertised, that depends on loan size, LVR and other factors.
You might be wondering what to do, what are the best options and how do I get mortgage free quicker without the gimmicks. Call us today on 0800 000 518.