With so much talk focusing on the prospect of rising interest rates, you may be wondering whether you should lock-in a fixed-rate deal before the Reserve Bank makes its move.

Speculation that rates will rise later this year is no reason for sleepless nights, but it’s a great reason to find out whether a fixed-rate loan is a good idea.

As a mortgage broker, I can take you through the alternatives and outline whether any lender fees might be attached if you switched from your current arrangement.

You can opt for a fixed-rate for your entire mortgage or select a split-loan in which a portion of your debt is subject to a fixed rate.

If you’re seeking some peace of mind, let’s make a time to connect. 

Fixed rates are moving pretty quickly right now even without the Reserve Bank pushing up the cash rate. 

Figures from comparison site Canstar say the current average two-year fixed rate is 2.71%. You could’ve struck a deal below 2% last year when rates were at record lows.

Here are a few pointers as you consider your options. 

• Interest rates could start to rise in a matter of months. The major banks are predicting the first rise around August or September with more to come in 2023.
• Let’s investigate your options with your current lender, as this should speed the process and minimise the possibility of fees.
• Fixed rates are most often set from one to five years.
• Going to a new lender may incur fees. We’d have to calculate the benefit over the term being offered.
• If you want today’s fixed rate, a lender may ask you to pay a “lock-in fee” as the rate could move higher even while your application is being processed.