Your First Home Loan - A Fixed Rate Option Author: Con Koulouris  Part of the Australian dream is owning your own home, and this will be a reality for many Australians. The excitement of buying your first home is the first step. The second is managing your home loan and paying it down. Paying down your home loan to NIL is a big hurdle overcome, and it will be just as exciting – and rewarding – as the purchase itself. Along the way there are many things to consider:

• Do you pay over the minimum repayment?
• Do you pay monthly, fortnightly, or weekly?
• Do you make lump sum payments?

These are points we all think about for our home loans and are what our banks guide us to consider. One point which is not often discussed in the current climate is fixing your home loan. For the past few years, home loan customers have enjoyed more interest rate reductions than increases. For many, they have not felt the financial effect of an interest rate increase at all. Most home loans are written as a variable rate loan. This means the interest rate can move when the bank moves its interest rates. Banks also offer fixed rates loans. In a fixed home loan agreement, the interest rate is agreed to at the start of the loan term and locked in for a period of time. A fixed loan is a great tool to ensure certainty of repayments on your home loan. A fixed rate loan is also powerful in a rising interest rate market as this will ensure your repayments do not increase. Most lenders will allow clients to fix all or a portion of their home loan. So, if you have a home loan and have never considered a fixed rate option, why not speak to a financial planner at AMEGA Financial Solutions to gain a different perspective and find ways to protect yourself from rising interest rates?         General Advice Disclosure: This document contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, AMP Financial Planning and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.