Concerned home buyers flock to fixed-rate loans
By Ethel Hazelhurst
Johannesburg - Ahead of an expected interest rate hike on Thursday - and probably more to come later in the year - more home buyers are opting for fixed-rate mortgages. Unlike variable-rate mortgages that go up and down with the Reserve Bank's official repo rate, fixed-rate loans remain in place for a period.
The credit crunch is here, rather than let it chew you up for breakfast, consider the type of home loan that you have. It is a good time now to switch to or take out a fixed rate mortgage. It is not expected that the interest rate will begin to fall for at least another 18 months. While you are considering this, take the time to calculate if you can consolidate your debts, and to check your home insurance.