Do investors go for fixed rate or variable rate? I don't see the advantages of using variable rate for the investment property. Any comments?
The advantage could be that if you lock in at a too high rate you miss out on the low interest rates. The same goes for variable. If you don't lock in when rates are low you miss out on keeping the low interest rates for a longer period.
You won't get a one or the other answer. When rates are low fix (if you can judge when low is). Some people like fixed as it gives you certainty of your payments for a few years without having to worry about rates going up.
In general, a fixed rate loan generally lacks the flexibility of a variable rate loan. The break costs that come with a fixed loan can also be quite hefty if you ever want to pay out the loan.
On the flipside, you’ll know what your repayments will be for the duration of the fixed rate – which can be good for budgeting.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
