Is a Two or Five Year Fixed Mortgage Better?
After the economic and lending meltdown of the 2000s, homebuyers stayed away from variable-rate mortgages and loans. The sharp increase in rates put several homeowners and individuals in financially precarious situations. Therefore, lenders adjusted their variable rate products to return confidence in them to the public. In 2022, homebuyers can still apply for fixed mortgages. Also, they can apply for fixed mortgage products that have an introductory fixed period of two to five years.
The predictability of mortgage repayments, in the beginning, helps homeowners find their financial footing. By the time the fixed period ends, they have reestablished their savings and have become comfortable with the repayments.
Lenders make decisions about what products to offer and the rates. However, when the public doesn’t find them favourable, they will stop borrowing in large numbers. At one point, the two-year fixed mortgage provided the best benefits. However, the five-year option started losing ground. Therefore, many lenders make both attractive options.
Mortgage House is among the lenders that offer both options for the Australian housing market. Our loan specialists help our clients succeed financially. An introductory period of fixed rates for two or five years puts the homebuyer in a place to succeed. Thus, both become viable solutions. To dive deeper into the situation, our team uses proprietary tools to evaluate all mortgage applications.
Fixed Mortgage Loan Terms Conclusion
Lenders have to adjust to the market. Therefore, two- and five-year fixed mortgage options can have attractive benefits at the same time. To explore your options, contact our Mortgage House loan specialists today.