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ISCOVER
Jessica Darnbrough
Borrowers who are looking to fix their interest rate have missed the boat, one leading industry commentator has claimed.
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Speaking to The Adviser, Yellow Brick Road's chairman Mark Bouris said the perfect time to fix is two rate movements before the last rate reduction.
“People that are contemplating fixing their rate should have done so in February 2009, two months before the RBA cut rates to just 3 per cent,” he said.
“Of course, nobody wants to fix their mortgage when interest rates are falling. They still believe they can save money by riding out the storm.
“Any good broker will be able to advise their client on when are the best times to fix, and right now isn’t one of those times.”
Mr Bouris said borrowers that look to fix their rate now will do themselves a disservice as they will end up forking out a lot more each month than those that continue to ride the variable rate wave.
