switch home loan to fixed rate?

I have recently started a home loan which has a variable rate of 2.35%. My mortgage broker has said that now that settlement has completed I can switch to a fixed rate. Should I do this, and how much of the loan should I lock in to a fixed rate and for how many years?

 

I am curious to understand why did the broker not advice to go on a fixed loan to start with, and recommended to settle the variable loan first and now recommending to change over to fixed rates.

I would think - Whether you lock rates or not depends on a number of factors and what you aim to achieve.

 

Agree! Are you going to hold onto the property for the term of the fixed period? Did you want an offset?

 

Talk to your broker in more detail about this. We have no context of your circumstances to give advice on this.

 

whats the fixed rate and do you think rates are likely to rise?

 

I don't have any details about rates yet. My broker is very slow in communicating. I think I would keep 25% as variable so I can have redraw on that amount. My loan product doesn't allow offset.

 

Reading between the lines, one reason may be the OP didn’t service on a fixed rate product as the revert rate with assessment loading of 2.5% can be higher than if just a straight variable rate + assessment loading, especially with the majors.

 

The broker did mention fixed rates earlier, but it was all a rush at that point and before we knew it the application was put in as a variable rate. The broker told me I could switch to fixed after settlement so I was happy with that.

 

Doesn't make sense to me.
Could've easily been done upfront.
More importantly youre better off talking to your broker to talk about what's a better split for you. 25% may not even be suitable for you.

 

It wouldn’t have been submitted until you sign off on it. Anyway, it’s done now and in the past.