Finance & Fury Podcast

Welcome to Finance and Fury, the Say What Wednesday edition. This week’s question is from Charl, regarding his home loan. “My bank is currently offering a 2.29% interest rate on a 3-year fixed loan. I am currently on a 2.99% Variable rate with them and am considering taking them up on this offer. I have funds in an offset account and don’t want to lose out of the flexibility of a variable loan. Do you think I should fix the majority of my loan and keep it variable on a small component, or keep it variable for now to see where the interest rates go?” To fix or not – Currently at record low interest rates – cash rate of 0.25% But can go lower – RBA kept rates the same But expectations that rates will be low for some time RBA ASX rate indicator Future of interest rates – Will rates go up? The period is 3 years fixed – so in 3 years will variable rates will be higher? Don’t see it – shape of the economy and debt levels have created a bit of a liquidity trap What if rates were to increase – Household debt t