Should I Lock in a Fixed Rate Home Loan?

With interest rates at record low levels, we thought what better time to speak with one of our local businesses and proven Mortgage Broker, Kerri Buurman of Buurman Finance Solutions.

Today we will look at a question that many are asking: should I lock in a fixed rate home loan?

You may have recently seen more ads than usual across the internet promoting super low fixed-rate mortgages. Never has there been a better time to consider this particularly for investors where we can secure rates as low as 2.59%pa.

With so many families doing it tough right now, locking in a low fixed interest rate can be an appealing option to reduce your monthly repayments and obtain peace of mind.

And while it may very well be a good route for your family, like most things in life, it is important to weigh up the pros and cons before you leap. This is where Buurman Finance Solutions can assist. With over 25 years of industry experience in guiding clients through all the options available from a range of lenders.

Consideration 1: Locking in for budget certainty.

We all know the big benefit of locking in a fixed rate: you get a guaranteed low rate for however many years you lock it in for. This is a vital part of ensuring affordability for investors enabling you to have confidence managing the outgoings for your investment.

Consideration 2: How low can they go?

The Reserve Bank of Australia (RBA) cut the cash rate to a record low of 0.25% in March – the second rate cut that month.

Now, most experts believe this is as low as the RBA will go – and even RBA governor Philip Lowe has made it clear that he regards 0.25%, rather than zero, as the “effective lower bound” for official interest rates.

But that does not mean the banks can’t drop their interest rates lower independent of official RBA rate cuts. Interestingly though, what we have seen is that they are dropping fixed rates and not passing all the rate cuts onto variable rate loans.

As mentioned above, competition in this space has been heating up recently and lenders are all eager for a bigger slice of the pie.

When you might want to lock the rate in

The big one is if your circumstances have recently changed and you are seeking some stability. This is particularly relevant for investors as it gives you the ability to set the cost of your investment for a period of time.

Still on the fence? Contact Kerri to discuss

Like many things in life, when it comes to home loans, there’s no one-size-fits-all solution.

If you would like to find out if locking in a fixed rate is a good fit for you, contact Kerri on the details below. Kerri and her team will be happy to run through all your options with you and guide you in the right direction!


Kerri Buurman, Director

M: 0432 141 930 | E:

Buurman Finance Solutions 

Australian Credit Licence 387942

Suite 1B/776 Canning Hwy Applecross WA 6153

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