Home Loans Explained Australia

– Hey, guys. Martin Bennett here, CEO of The Loan Room coming to you today with Glen. – Good morning. – One of our Senior Mortgage Brokers. Glen tell me, what are we going
to be talking about today? – Today I just want to have a bit of a chat around some
fixed-rate home loans. – Some of the benefits,
some of the drawbacks, and what our clients can
expect with a fixed-rate. – Fantastic, and we know, I hear out there even from clients myself that
people are really confused in the current finance space anyway. Should we be doing variable,
should we be doing fixed. Is that what you’re sort of finding? – Yeah, absolutely. A lot of clients, first they
don’t quite know exactly what are the benefits between fixing. And then secondly, once they do know, what’s gonna be better for them. So yeah, good conversation to have. – So, for the viewers today, what are the benefits of fixing. – Yeah so, the benefit of
fixing gives you stability of knowing exactly what your rates are. Usually for two to three years, that’s kind of the common fixed-rate term. Banks will go up to five,
but two to three gives the clients a real level of stability. So that their household budgeting, they know exactly what to expect
from a mortgage repayment. – So if you’re speaking to
someone and they want to have a fixed-rate home loan,
would you want them to fix the whole loan
or just a portion of it? – Yeah, it depends on their circumstances. So clients that are gonna be
coming into a lot of income, that might have some surplus savings, might look to stay part
of it on a variable rate. In which case, they can knock
that down really quickly. Clients that are a little bit nervous about potential rate rises or
they’re a little bit tighter, they’re borrowing up to their
limit, then a fixed-rate loan might be good for
because of the certainty. – Excellent, so you can
always create for a client the best of both worlds. – Definitely, yep. – That financial security and also the flexibility
of a variable loan. – Yeah, and that could look
a couple of different ways. So, we have banks out there traditionally would split your loan. You’ll have two loans set
up, one of them is fixed and one of them is variable. And you operate that as
essentially two loans. And we do have a couple of banks, as well, that will give you an offset account against the fixed-rate loan. – So I always thought and I think probably the people watching too,
if you have a fixed-rate, you don’t have an offset account. – Definitely that’s
the traditional product that a lot of the banks give
you the stability of knowing what your repayments are. They take away a little
bit of flexibility. Some give and take if you
take a fixed-rate loan. As I said, there are a couple out there that will give you the
best of both worlds. – So that’s really good,
that’s fantastic for the loan. – Absolutely, yep. – And what do you finding
in interest rates wise with the banks and with clients fixing. – Yeah, so some really,
really sharp fixed-rate loans around about the 3.69 mark. – That’s cheap. That’s cheaper than most variable rates. – Yep, definitely and that’s
exactly what I was gonna say. They’re probably slightly under, the variable rates that are
out there at the moment. So yes, really competitive pricing. – That’s really good. So in a nutshell guys, if
you’ve got a current home loan, if you’ve thought about
fixing or you want to review, email glen at [email protected] He will look at your situation. He’ll be able to go through them. And this product which has
the hundred percent offset, what rate is that one right now? – 3.69 – So 3.69, fixed. How many years fixed is it? – Two. – Fixed for two years with a
hundred percent offset account. I mean that sounds fantastic. Again, everyone’s personal situation is their personal situation and this is not financial
advice guys, but hit up Glen. One more time, [email protected] – Correct. – If you want a review,
we are here to help. I hope to hear from you. – Talk to you soon. – Thank very much Glen.
_ Thanks guys. Thanks Martin.

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