Revolving credit is one of those gems that advisers like us pull out to look intelligent. It’s not for everyone, but to my mind revolving credit rocks!
The rationale for this is to avoid having your entire mortgage mature at the same time. By staggering your mortgage across multiple fixed-rate terms, you reduce your exposure to steep mortgage rate hikes later on
My preferred fixed term remains one-year fixed at 5.39% or 18 months at 5.79% – and probably splitting the mortgage between both to give two bites of the cherry.
Einstein marveled at the compound effect of interest rates for good reason. Over the life of a $300,000 mortgage you will pay over $360,000 in interest! When you are dealing with such big numbers the cost of getting it wrong can easily run over $80,
Having the right Mortgage Strategy can save you thousands in interest every year let alone over the life of a mortgage. That’s why we think it always pays to get the best possible advice. JB (author of this blog) is the former General Manager Products at ANZ National Bank and has managed over $15 billion
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