Mortgage broker Brett Sutton from Two Red Shoes said sentiment has shifted over the last four years when fixed interest rates were incredibly popular – providing borrowers with \u201ccertainty during a period of historically low rates\u201d.<\/p>\n
He told Yahoo Finance that now the dynamic has shifted.<\/p>\n
\u201cNow, the opposite is true. Fixed rates are no longer a “no-brainer” for most borrowers,\u201d Sutton said.<\/p>\n
\u201cIn recent times, fixed rates were much higher than variable rates, making them unattractive for homeowners.<\/p>\n
\u201cToday, while fixed rates have come down and are now much closer to variable rates, they’re still not appealing enough to drive a new wave of borrowers to fix.\u201d<\/p>\n
The Sydney broker said more borrowers were staying on variable rates as they, like the big banks, think the RBA will continue its rate cutting cycle.<\/p>\n
\u201cThey don’t see the value in locking in a rate that’s only slightly lower than their current one, when they could potentially benefit from even bigger drops in the future,\u201d he said.<\/p>\n
So off the back of a surprise hold, and the potential for another in September, is this a good time to fix?<\/p>\n
That all comes down to your personal circumstances.<\/p>\n
\u201cThe gap between the best fixed and variable rates is often small, making the decision less about a significant saving and more about peace of mind. For those who value budgeting certainty above all else, a fixed rate might still make sense but for the majority, the bet is on the RBA continuing to ease monetary policy,\u201d Sutton said.<\/p>\n","protected":false},"excerpt":{"rendered":"Mortgage broker Brett Sutton from Two Red Shoes said sentiment has shifted over the last four years when…\n","protected":false},"author":2,"featured_media":61596,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[64,63,14821,5819,14819,44],"class_list":["post-61595","post","type-post","status-publish","format-standard","has-post-thumbnail","category-australia","tag-au","tag-australia","tag-cash-rate","tag-graham-cooke","tag-michele-bullock","tag-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/61595","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=61595"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/61595\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/61596"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=61595"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=61595"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=61595"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}