Fixing my interest rate at a later stage
If you're interested in taking out a home loan and making moves into your local real estate market, taking the time to chat with your finance lender about the possibility of altering your mortgage in the future should be at the forefront of the conversation. For example, being able to change your interest rates and take advantage of a fixed-rate could be a useful addition to have in the fine print of your mortgage.
There are a number of ways to take advantage of these features. Here are some of the most common avenues to consider.
Home loan refinancing
When you reach the point in your mortgage repayments where you're feeling that it's no longer working in your best interests, speak with your mortgage provider about the possibilities of refinancing your home loan.
Refinancing is effectively replacing your current home loan with a more suitable finance product, which means you can revamp your home financing situation and take advantage of new facilities - including new interest rates being locked in through fixed-rate.
This is a wonderful way of taking advantage of accommodative new interest rates, which can help you save significant amounts of money on your mortgage repayments in the long run.
Home loan split
Taking out a split home loan is also another way to take advantage of both a fixed-rate and variable-rate home loan, depending on your current attitudes towards the market and economic climate.
Basically, you split your mortgage between both types, giving you the freedom of a variable-rate home loan coupled with the security of a fixed-rate home loan. This allows you to spread your credit risk around easily and maximise the amount of money you save in the long run through strategic repayment scheduling.
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