All Topics / Help Needed! / Fixing interest rates
Hi,
Just want to know the general opinion of people on fixing interest rates. Having for example 2 properties with two separate loans
with the bank. Current rate is 5.6% but if I fix it will be 5% for 2 years.
Thank you in advance.
Maybe it'll go up, maybe it'll go down. You need to ask yourself the impact on you if it does go up. Pick where your happy number is and lock it in so you can sleep at night.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Fixing is good if you need to know what your monthly repayments will be each month – so for budgeting purposes it can be helpful.
In general, fixed rate loans aren't very flexible and not many of them allow for an offset to be linked. We can get around this by keeping a portion of the loan variable.
All in all, I wouldn't fix in an attempt to "beat" the variable rate. I would fix if you need some certainty in your repayments.
The break costs on fixed rate loans are usually quite high as well – so you'll need to be sure that you won't be closing down the loan during the fixed rate period.
Cheers
Jamie
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]
Thank you Jacqui and Jamie.
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