We bought our deluxe apartment on a mortgage loan. It was bought at 10 percent downpayment for a period of 15 years. We opted for variable rate mortgage. I was thinking about changing to fixed rate mortgage when the rate gets the lowest. I read on this blog on the things to be aware of when you switch to a fixed rate loan. https://www.butlermortgage.ca/mortgage-news/going-from-variable-rate-mortgage-to-fixed-what-you-should-be-aware-of/ They say the lenders may try to hide the best rates. Has anyone converted from variable rate to fixed rate mortgage and felt it was useful?
The link relates to Canadian Mortgages so some of the wording might not be accurate here in Australia.
With lenders hiking their investment variable rates you may well find that a fixed rate is more attractive going forward.
Whether it is right for you will depend on a number of factors including your risk profile etc.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
We bought our deluxe apartment on a mortgage loan. It was bought at 10 percent downpayment for a period of 15 years. We opted for variable rate mortgage. I was thinking about changing to fixed rate mortgage when the rate gets the lowest. I read on this blog on the things to be aware of when you switch to a fixed rate loan. https://www.butlermortgage.ca/mortgage-news/going-from-variable-rate-mortgage-to-fixed-what-you-should-be-aware-of/ They say the lenders may try to hide the best rates. Has anyone converted from variable rate to fixed rate mortgage and felt it was useful?
Fixing rates has both pros and cons. I’m sure you could find lots of discussions about it both here and by searching online.
Will the bank hide their best rates? Perhaps. Why wouldn’t they? It is also very possible that out of the thousands of loan products that are available in the market, your bank doesn’t have the one that would most suit you.
I’m biased of course but even before I was a broker, I was (and still am) an investor and I’ve always used a broker. It’s great having a finance pro on your team 👍😎
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Fixed rates – the banks always win! They know more than you before you are even told about it!
Applying that current logic then blackhotel you are suggesting the variable rate over the next 3 years is going to fall ?
I have to disagree with you. We saw yesterday lenders increasing variable rates by 25 bps out of cycle from the RBA and this is the start of things prior to Basel 4.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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