Is now the time to borrow

With interest rates at the lowest rates in over 30 years is now the time to borrow?

A survey of interest rates today (27-1-09) shows that current rates are at some of the lowest levels in years a sample being:

• Variable Rate: 5.39%
  
• 1 year fixed rate: 3.99%
  
• 3 year fixed rate: 5.69%
  

Add to that the First Home Owners Boost brings the first home owners grant up to $21,000 for a new property or $14,000 for an existing property there may not be a better time to buy a first home and too look at your financing needs.

With rates rising through 2008 both from the Reserve Bank raising rates along with the banks raising rates independent of the RBA and often out of sync with each other to less than 12 months later having rates at near record lows how do you know what the best deal for you is.

A variable rate of 5.39% may sound cheap compared to 5.69% fixed for three years and 3.99% fixed for one year sounds too good to be true and a difference in rate of 1% on the average home loan of $268,000 will cost you an extra $230 per month.

But if the low "discount" rate will skyrocket after the discount period to well above the market rates what will the cheap rate cost you over the life of the loan.

Southern Cross Financial Planning does not just look at the cheapest rate, being financial planners, we can give personal advice to you have the best loan package to suit your personal needs and advice on the best way to fund your debt.

Contact Us now to arrange an appointment with one of our advisers.