Navigating Interest Rates in 2024: What Borrowers Need to Know

Interest rates have been a hot topic over the last year. As we move through 2024, many borrowers are asking whether they should fix their rates or stick with variable. The truth is, it depends on your personal circumstances and risk tolerance.

The Current Landscape

The Reserve Bank of Australia (RBA) continuously monitors inflation and economic growth to determine the cash rate. While we've seen fluctuations, the key is to ensure your borrowing capacity can handle potential increases.

Fixed vs Variable

Fixed rates offer certainty, which is great for budgeting. Variable rates offer flexibility and often come with features like offset accounts and redraw facilities. Many of our clients opt for a split loan—fixing a portion for peace of mind while keeping the rest variable to take advantage of an offset account.

What Should You Do?

The best approach is to review your current loan health. If you haven't checked your rate in the last 12 months, you might be paying the 'loyalty tax'. Reach out to our team for a free loan review.

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