It depends on your circumstances and your outlook. Fixed rates are usually a little higher than variable rates so you have to weigh up the alternatives ie comparative cost of each option, the requirement you have for certainty in your repayments, what you believe rates will do in the future, and the question of how long to fix for. Fixed rates have the benefit of giving you full knowledge of what your repayments will be over the term you fix however they also have a number of disadvantages. These may include a limit to the amount of extra repayments that can be paid off the loan each year. Most lenders limit this to an extra $5K or $10K over your agreed repayments There may be significant break costs if you have to break the fixed rate period before its expiry date ie if you decide to refinance or sell the security property. The fixed rate is usually set at time of settlement - not at the time the rate is quoted to you at the beginning of the arrangement of the loan. You can however "lock" the fixed rate upfront however there usually is a charge for this and the amount is dependent on the lender you are using.

Depending on what area you are seeking advice, will determine if there is a fee or not. Generally it costs you nothing. As a group we refer large volumes of loans to each bank and commissions are paid back from these lenders based on this volume. The end result is that you end up with exactly the same loan as if you went to the bank directly but gain through getting our knowledge and advice on which banks it is worthwhile for you to approach and which banks are not. You also gain from our knowledge of loans and advice on the best way to structure your loan.

You can potentially save very large amounts in interest cost by paying the loan off more frequently and by paying off extra amounts. At Menzies Financial Group we use software that can show you exactly how much you would save in any given scenario and suggest ways you can achieve the greatest savings. Setting your loan up with an offset account also can be a way to pay your loan off more quickly because any funds placed within this account is effectively equivalent to paying principle off your loan. Contact us to find more about this powerful structure.