Refix Smarter: Free Calculator for Smart Fixed Term Decisions

Introduction

Welcome back to our channel, where we delve into the complexities of home loan rates. In the current economic climate, we find ourselves grappling with soaring rates compared to the past five years. Despite economists' predictions of a potential drop in interest rates over the next 1 to 2 years, several banks have recently increased their rates, citing a desire to bolster profit margins. It appears that we may be witnessing the pinnacle of interest rate hikes in this economic cycle. 

Challenges in Choosing Fixed Term Rates

Choosing the right fixed term rate for your home loan can be a daunting task. Opting for a short fixed term may leave you anxious about the possibility of interest rates remaining high when it's time to refix. Conversely, fixing it for an extended period may result in overpaying if interest rates drop swiftly. The decision ultimately hinges on finding a balance between cash flow stability and your risk profile, as there is no one-size-fits-all answer. 

The Economic Landscape

According to most economists, a gradual decline in interest rates is anticipated around the end of 2024. This projection adds another layer of complexity to the decision-making process for those looking to refix their home loans. 

Break-Even Point Calculator

To assist you in making a more informed decision, we have developed a break-even point calculator. This tool, available for download [here] , enables you to calculate the interest rate needed to break even when choosing a shorter fixed term, all while comparing it to the current long-term rate. Please click [this link] or scan the QR code below to access this free calculator. The video accompanying this article explains how the tool works in detail. 

Looking Ahead

We hope that our content and tools provide valuable insights, assisting you in making better-informed decisions about your fixed term. In addition to the break-even calculator discussed today, we have a series of other calculators for investment property returns, loan repayment amounts, and more, which we will introduce in future articles. 

Engage with Us 

If you have any questions or suggestions, we welcome you to reach out to us by phone or email. Your feedback is essential as we strive to create content that addresses your concerns and interests. Stay tuned for our next article, where we delve deeper into navigating the intricacies of the ever-evolving economic landscape. Until then, happy reading!