Hi everyone,
I'm a first home buyer and about to take out a home loan with ING direct for my PPOR. They have a variable rate of 5.09%. their 5 yr fixed rate is 7.49%. Wanting to take advantage of the low interest rates but worried about all of the risers to come I am considering taking out 50% variable and 50% fixed. I also like "sleep easy at night" factor of having 50% fixed.
I am just after some advice from some experienced people.
Cheers,
ShannonIf you fix it ties you down. It will make it harder to move banks. You may not intend to move now, but things change.
You will also get a rate of around 5% now – so you will be paying 2.49% extra. Do you think rates will jump more than 2.5% in 5 years? Even if they do you could still be worse off unless they jump much more as you will be paying extra for the fixed rate now.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Given that they dont offer an Offset account i wouldnt have taken out the loan with ING in the first place but given that you are
already committed as Terry all depend on your perception of short and merium term interest rates,Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
