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I spoke to my broker and he said it is possible to fix your loan as Duckster said, but he advised limiting it to 50% of the loan. This leaves room for some flexibility.
Some people have started fixing. However, variable rates still haven't reached the bottom. Rates may still continue to go down. I'll wait until variables start going up before we look at fixing.
What do you guys think?
Quote:Have you heard of interest rate averaging
What you do is you take out fixed rates on portions of your loan
So 20% at 5 years
20% at 4 years
20% at 3 years
20% at 2 years
20% at variable rateThe 20% variable lets you pay off more if you need to
20% goes variable in 2 years time and at this stage you can chose if you want it to remain variable or fix it for 5 years
20% goes variable in 3 years time and at this stage you can chose if you want it to remain variable or fix it for 5 years
20% goes variable in 4 years time and at this stage you can chose if you want it to remain variable or fix it for 5 years
20% goes variable in 5 years time and at this stage you can chose if you want it to remain variable or fix it for 5 years
The advantage of doing this is that a small portion of the loan goes variable each year and doesn't largely effect the overall loanHi Duckster, Thanks I've never heard of this before, I'll look into it.
