Don’t lose by fixing rate
http://www.property24.com/articles/don’t-lose-by-fixing-rate/11861
While economists – and homeowners – widely expect interest rates to start rising early next year if not later this year, pegging bond rates to a fixed level is not necessarily the smartest option right now, says Martin Schultheiss, CEO of property group Harcourts Africa.
“Banks usually offer fixed rates at one or two percentage points above prevailing levels, which means that homeowners who exercise this option will be paying a higher rate until interest rates catch up. And if rates do not rise quickly, homeowners paying a fixed rate will be out of pocket,” he cautions.
(via Instapaper)
My thoughts exactly. You pay a premium to fix your rate and this means you pay thousands more in the end.
