18/09/2009

Switching to variable interest rate home loans not worth it.

Australia's largest independent mortgage broker the Loan Market Group says home owners are better off sticking to variable rate home loans.

 

Even if Reserve Bank of Australia were to increase official interest rates, the borrowers are much better off continuing their present variable rate loan.

 

They will derive no benefit from shifting to variable interest rate home loans as the fixed rate cycle bottomed out 6 months ago.

 

The borrowers will end up paying huge extra repayments with nothing much to show off as savings.

 

 

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