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As rates hit rock bottom, is now a good time to fix part of your mortgage? – The New Daily

As rates hit rock bottom, is now a good time to fix part of your mortgage? – The New Daily

Hugh recently chatted with Matt Johnson of The New Daily to give some frank advice on mortgages

Excerpt below

Centaur Financial Services managing director Hugh Robertson said it was unsurprising more of his clients asked about refinancing since Australia’s coronavirus lockdown began.

“When times get bad, we want to look at where all our money is going and [home loans] are an obvious area because you are dealing with a large sum of money,” Mr Robertson told The New Daily.

By fixing part of a home loan and pushing providers for a discount on the variable portion of a mortgage, customers could retain control of their repayments, Mr Robertson said.

Mr Robertson added that major lenders profit from customers not understanding how loan-to-value ratios (LVR) change over time.

Say you purchased a $450,000 property with a $400,000 loan and the property itself has increased to $600,000, your LVR has decreased from around 88 per cent to 75 per cent, but your bank is not obligated to offer you a better loan,” Mr Robertson said.

“That’s why if you go and talk to your bank, they might say: ‘Hang on a second, based on what you have just told us, we’re willing to look at it’.”

Read the full article

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