MENU

Should you fix your home mortgage? The real risk if you do.

18 May 2012

Mortgage interest rates are now at 16 year lows.  I remember back three years ago when the general advice was this was the time to fix mortgages. In hindsight of course this was terrible advice. Interest rates have continued to fall during the past few years and have remained at consistently low levels.

Once again the general advice being given is now is a great time to fix your mortgage. It’s almost like a type of speculation, trying picking the right moment when to lock your financial situation up for a number of years.

Unfortunately while most people are focusing intensely on getting the best interest rate possible they don’t even consider the biggest risk with fixed mortgages. This risk isn’t whether you will lock yourself into a rate and then interest rates fall further. No, the real danger is the mortgage holder’s situation changes and they need to break their mortgage, incurring break fees. These break fees can be very expensive, sometimes amounting to many thousands of dollars.

It’s seem a little bit frightening that someone would fix a mortgage for three, four or even five years. There are so many uncertainties in life. What if they find they don’t like their new house, neighbours or street? What if they have an unexpected job transfer to another city or country or a redundancy? What about a relationship breakup? There is one thing certain about life and that is uncertainty. Yet very few people contemplate the real risks they are taking when they fix a mortgage for a long period of time.

News Archive

Looking for a unit?

28 January 2019

Welcome to 2019

07 January 2019

Merry Christmas

17 December 2018

Our New Fees - 1% + gst

29 October 2018

SOLD - Onehunga Mall

02 September 2018

Another Great Result!

01 July 2018

Merry Christmas

24 December 2017

It's getting busy again!

09 April 2017

Welcome to 2017

04 January 2017

Merry Christmas

23 December 2016

Another Record Result

13 December 2016

We are five years old!

11 September 2016

Five Offers!

26 August 2016

Nine Offers!

06 August 2016

Welcome to 2016

01 January 2016

Merry Christmas

13 December 2015

29 Bids = Results!

17 August 2015

Mobile Website

07 July 2015

Airpoints

19 June 2015

A Brief Message

07 June 2015

Busy Open Home!

25 April 2015

Go the Black Caps

26 March 2015

Welcome to 2015

08 January 2015

Merry Christmas

22 December 2014

Press Release

13 October 2014

Stunning Townhouse in Mt Eden

17 September 2014

100% + Smart Low Fees

27 January 2014

Merry Christmas

19 December 2013

100% Sales Success

11 December 2013

100%

19 July 2013

100% Success Rate

02 May 2013

We Have A New Office

18 February 2013

New Properties For Sale

28 January 2013

Happy New Year!

04 January 2013

Merry Christmas

20 December 2012

New Listing - Eden Mews

05 December 2012

40 Bids = Results!

12 November 2012

Sold Stickers

16 October 2012

An Affordable Unit In Mt Eden

24 September 2012

What Our Clients Are Saying

05 September 2012

100% Sales Success

23 August 2012

Another Great Result!

21 August 2012

Outstanding Results!

25 July 2012

100%

12 April 2012

New Listing in Epsom

19 January 2012

Welcome to 2012

09 January 2012

Merry Christmas

22 December 2011

What Our Clients Are Saying

15 November 2011

Go The All Blacks!

18 October 2011

36 Houses needed a day?

23 September 2011

Welcome!

21 September 2011