Julian Finch: Fixed interest rates might save a lot of households over the next 12 months

Leading lending expert, Julian Finch, founder of Finch Financial, is urging households suffering under the weight of high interest rates to reach out to a lending expert for assistance.
 

"There are many options available to people at the moment to help reduce the weight of monthly repayments," Finch said.
 

"Many people are not aware that fixed interest rates are still incredibly attractive and multiple lenders are offering very good rates at the moment on fixed interest rate loans. What I am saying is that people don't have to live with high interest rates, there are things you can do to tinker with your home loan to relieve the financial pressure and stress. Fixed interest rates are an ideal option."
 

Finch is a leading money expert, mortgage broker and founder of Finch Financial, Julian Finch. With decades of experience in mortgage brokerage, Finch offers expert insights and advice to thousands of Aussies seeking to get their loan applications approved. His firm, Finch Financial, achieves some of the highest loan approval rates in the country and is known to secure loan approvals within a matter of minutes.
 

Finch believes homeowners should reconsider fixed interest rates for their home loans as a smart financial strategy, especially while interest rates remain elevated. Despite fixed rates receiving less attention recently, Finch explains why they may still be the most suitable option for many borrowers until rates are expected to decline in mid-to-late 2025.
 

"Many fixed interest rates are at least one percent lower than variable rates right now, offering a level of certainty and savings that shouldn't be overlooked," Finch said.
 

Finch outlines six reasons fixed interest rates could still deliver the best financial result for homeowners.
 

Fixed rates are often lower than variable rates
 

"Currently, many fixed interest rates are sitting at least one percent below variable rates. This difference can translate into significant monthly savings, particularly for borrowers with larger loans," Finch said.
 

Rates are predicted to stay high until late 2025
 

"Economic forecasts suggest the Reserve Bank of Australia (RBA) will not start lowering rates until mid-to-late 2025. Locking in a lower fixed rate now can protect borrowers from the pain of variable interest rates, offering some financial relief and stability during difficult times," Finch said.

Flexibility with split loans

"Borrowers don't need to choose between fixed and variable rates, they can split their loan, fixing a portion for predictability while keeping another portion variable to take advantage of potential future rate cuts. This approach balances flexibility with financial security," Finch said.
 

Certainty over monthly repayments

"Fixed rates lock in your interest rate for a set term, giving you a clear picture of your monthly costs. This predictability can be invaluable for budgeting, particularly during the festive season or when managing other financial priorities," Finch said.
 

Protection against rate increases

"Should variable rates rise further before the anticipated drop in 2025, those on fixed rates are shielded from any additional financial burden," Finch said.
 

"While an increase is not predicted, we could certainly face a situation where a drop in variable interest rates is postponed due to certain circumstances.
 

"Fixing your loan now could be a safeguard against the volatility of the current economic climate."
 

Peace of mind

"For many borrowers, the greatest benefit of a fixed rate is peace of mind. Knowing your repayments won't change for the fixed term can reduce stress, allowing you to focus on other financial goals," Finch said.
 

Finch explained that there are a number of benefits to consider.

• Predictable planning: Fixed rates are particularly useful for families or individuals with tight budgets, as they eliminate surprises in monthly payments.
• Long-term savings: Even if fixed rates are slightly higher than the lowest variable options, the stability and protection they offer can make them more cost-effective in the long run.
• Market timing: By locking in a fixed rate now, borrowers can wait out the high-interest-rate environment until rates begin to normalise.

"Fixed rates may not be the perfect fit for everyone, but they offer tangible benefits in today's economic landscape," Finch said.
 

"It's about finding the balance between saving money and maintaining financial stability."
 

About Finch Financial Services

Based in Hurstville, NSW, Finch Financial Services has been servicing Australian families and businesses with home, personal and commercial loans as well as asset finance services since 2015. Ranked amongst the top five percent of brokerages in Australia according to data from the MFAA, Finch Financial Services is a leading brokerage and family-owned business that specialises in finding its customers loans that are tailored to their needs and goals.

https://finchfinancial.com.au/