Money magazine Comments - Ask Paul: Interest rates are at an all-time low but we're stuck in a fixed rate Interest rates have fallen to 2.27% on a three-year fixed term but Victor is stuck paying 4.45% and the bank won't budge. Should he stop making extra payments? https://www.moneymag.com.au/feed/latest?story=166778569 Mon, 20 Jul 2020 08:56:40 +1000 Mon, 20 Jul 2020 08:56:40 +1000 en-AU Copyright 2026 Money magazine 5 Money magazine Comments - Ask Paul: Interest rates are at an all-time low but we're stuck in a fixed rate https://media.moneymag.com.au/prod/media/library/Money_Mag/Logo/Logo_401x133.png Comment by Daniel Rice ()

G'day Victor, your bank does not sound helpful. If you find your "break" cost which is the payment required to leave your current fixed interest loan, you will then be able to determine if it is worth exiting your current fixed loan.

As an example my family just paid slightly over 10k break cost to exit our fixed interest loan and we will make this back in interest payments in 18months with our new rate (our fixed rate was lower than your current rate).

If your bank is being obstructive, give 'em the flick. There are plenty of lenders out there that will work with you.

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]]> Daniel Rice () Mon, 20 Jul 2020 08:56:40 +1000