Fixed or Variable Interest Rate Options? That’s a hard one and it really depends!

Some homeowners feel more comfortable with a fixed interest rate as they know their exact commitments for a fixed period of time. Others feel more comfortable with a variable mortgage rate, especially in an economy where trends show an expected interest rate drop.

It could even be a mixture of both. Discuss this with your mortgage broker and understand the pros and cons of each based on your level of comfort.

A good Sydney mortgage broker will spend some time talking to you about your current circumstances and your needs. This will help them determine which the best type of loan is for you.

To help with the assessment, you will be asked to provide documents to help support your financial situation and identity. These documents should include a 100 point checklist for identification, bank statements, tax returns, any outstanding loans, pay slips, and any other financial statements you may have.

Once your Sydney mortgage broker has a good idea of your financial situation and your objectives, they will tell you about the various loans that may be available to you.

Most mortgage brokers are paid a commission by the lender, and often do not charge the client anything. However, there have been instances of brokers recommending lenders who pay a higher commission, regardless of whether it is the right type of loan for the client or not.

A reputable local mortgage broker will always act in the client’s best interest, regardless of the commissions offered by the lender. Additionally, the mortgage broker should be happy to disclose how much commission they are being offered when performing loan comparisons. If they refuse, there is a good chance they are not acting in your best interest.