As Australian banks cut fixed term interest rates on home loans to record lows, financial counsellors at Consumer Action Law Centre have advised prospective borrowers to consider the longer term and what costs they would face should they need to opt out before the end of the fixed term.
A low fixed rate might look good now, but if the market changes over the next few years, borrowers might find at the end of the fixed period that rates are much higher, blowing their budget. Unexpected charges and fees can also have a significant impact.
Australians struggling to meet mortgage repayments or pay their bills can speak to free and independent financial counsellors by calling 1800 007 007.
For more information on this article, please see, http://consumersfederation.org.au/as-fixed-term-interest-rates-fall-to-record-lows-borrowers-advised-to-look-beyond-the-short-term/
For West Australian consumers, free legal information and advice is available from Consumer Credit Legal Service (WA) Inc.. CCLSWA assists consumers who have issues with their lenders e.g. financial hardship. Contact CCLSWA on our telephone advice line service on (08) 9221 7066 or visit our website at www.cclswa.org.au