Our
consultant will advise you in regard to choosing your mortgage
rate. The principle matter to consider will choosing the term
of your mortgage and whether to choose a fixed or variable rate
mortgage. In addition we will need to consider all discounted
rate offerings available from lenders. Most lenders offer special
one year rates to new applicants.
Our advice will focus on your long term needs
and the expected value over time of the mortgage product compared
to other lenders.
Fixed Rate
If you want certainty into the future in regard
to your mortgage repayments you can choose to fix your repayments.This
certainty comes at a price which is the difference between a variable
rate repayment and a fixed rate repayment.
Your mortgage advisor will advise you of the alternatives
and the cost of the various options. Much depends on your risk
profile, the level of the mortgage and your income.
Future mortgage rates are uncertain and certainly today rates
are extremely low and serious consideration should be given to
fixed rate options.
You can set your rate for a fixed number of years
on a pre-defined term length. For example your rate may be 4.5%
for 3 years. After this time the rate will be variable.
Should you wish to cancel your mortgage agreement
(for the purposes of moving house for example) then you may incurr
a penalty for breaking a fixed rate contract.
An advantage of a fixed rate mortgage is that
you are able to budget for the next x amount of years and your
repayments will not increase during this time.
Use
our mortgage repayment calculator
to compare your mortgage repayments under varying interest rate
options
Variable rates
If mortgage rates set to reduce or expected to
stabilise at todays levels then a variable rate may be the best
option.
With a variable rate mortgage your
mortgage repayments will rise or fall in line with the mortgage
interest rate set by your lender which in turn are based on the
euribor rate.
Variable rate warning: The cost of your monthly repayments may increase - If you do not keep up your repayments you may lose your home. The payment rates on this housing loan may be adjusted by the lender from time to time.
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