Time to lock in a three year fixed rate?

If you're a borrower, higher rates are bad news and you'll need to minimise your interest costs.

Fixing the interest rate on your mortgage is one option, but some experts say most people lock in at the wrong time, when rates are already high.

A better approach might be to split a home loan between fixed and variable elements.

Splitting a loan "in two equal parts, no matter which way interest rates move the impact is halved because only half of your mortgage will be affected".

There's still time to fix at three-year rates and save money, but this window of opportunity may close if interest rates rise next month.

Source: The Australian

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