All Topics / Heads Up! / 25yr loan fixed-variable

Viewing 13 posts - 1 through 13 (of 13 total)
  • Profile photo of NevaniaNevania
    Member
    @nevania
    Join Date: 2003
    Post Count: 3

    Hi
    Posted this yesterday but didn’t go through(I think) so hopefully we won’t have a double up.
    I have just finished “0-130” and was unsure of the structuring of the loans. I understand 25yr loans P+I. With most +ve CF properties returning about $30/wk a small rise in interest rates would blow this +ve to a -ve very quickly. Do you lock interest rates for the start of the loan say
    5yrs or do you (can you) lock them in for the full 25yr term.

    Thanks
    Nevania

    Profile photo of RickstaRicksta
    Member
    @ricksta
    Join Date: 2003
    Post Count: 41

    Nevania

    Personally I fix my interest rates around the 3-5 year mark but this also depends on the interest rate trends at the time. This allows me to budget for all expenses for this amount of time and gives me piece of mind so I can still afford holidays etc. Its not the most aggressive way to do it but it suits my situation.

    It also can give you the opportunity to setup an exit strategy if your fixed term is about to expire and you cant afford the new interest rates or you want to budget for another investment property.

    Profile photo of PropertyGuruPropertyGuru
    Participant
    @propertyguru
    Join Date: 2003
    Post Count: 1,502

    Hi Nevania,

    I don’t think you can lock for 25 years interest rates in OZ. I am locking my interest rates for 3 years right now.

    Cheers

    [:)]
    PropertyGuRu
    I will be billionaire soon!

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi,

    The best I’ve seen in Oz is ten year fixed interest rates.

    What I do is know at what interest rate I can lock in my positive cashflow and still earn a good return. That way I can monitor what happens and be proactive rather than reactive.

    Cheers,

    Steve McKnight

    **********
    Remember that success comes from doing things differently.
    **********

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Still in SchoolStill in School
    Member
    @still-in-school
    Join Date: 2003
    Post Count: 1,844

    Hey Steve,

    Could you please tell us “Which Fiancial Lender” who is offering 10 years fixed rate and what their currnet rate is?

    Cheers
    s.i.s

    “People 4 get that by saving just $3 aday & investing it sensibly over a working life, you’ll end up wit around $1 million.”

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429

    SIS, I can’t tell you which ones cos I don’t remember, but know that I’ve seen at least a few. They were at 7.5% about 2 years ago when I first saw them.

    Ask a broker.

    Cheers
    Mel

    Profile photo of Still in SchoolStill in School
    Member
    @still-in-school
    Join Date: 2003
    Post Count: 1,844
    Profile photo of redwingredwing
    Participant
    @redwing
    Join Date: 2003
    Post Count: 2,733

    Is “melbear” “steve” ??? [}:)]

    REDWING

    “The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”

    Profile photo of Matt PMatt P
    Member
    @matt-p
    Join Date: 2003
    Post Count: 645

    quote:


    The best I’ve seen in Oz is ten year fixed interest rates.


    I would also be ineterest where you can get 10 years fixed, the I have seen is 5.

    Matt

    “If you do what you have always done, you will get what you have always had.”

    “Isn’t it time for a change?”

    Profile photo of richmondrichmond
    Participant
    @richmond
    Join Date: 2003
    Post Count: 831

    Hi guys

    Westpac do a 10 year fixed interest, currently 7.6%

    I think St George do one as well…

    Cheers
    r

    Profile photo of Still in SchoolStill in School
    Member
    @still-in-school
    Join Date: 2003
    Post Count: 1,844

    Hi Richmond,

    Thanks for the info,

    How was your wedding and also, how did your bachelor party go? [:P][:P]

    cheers
    s.i.s

    “People 4 get that by saving just $3 aday & investing it sensibly over a working life, you’ll end up wit around $1 million.”

    Profile photo of richmondrichmond
    Participant
    @richmond
    Join Date: 2003
    Post Count: 831

    G’day SIS

    Wedding was great, the perfect day… had my buck’s night when the rugby world cup was on a few weeks ago, and can’t recall much after kick off!!

    Cheers
    r

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hey Richmond!!!

    Congrats mate. I didn’t know you were getting married… welcome to the club.

    No – I’m not melbear – just me.

    As for 10 year loans… it’s not that hard to find out, you just need to dig further than the surface.

    The infochoice website has it nicely packaged for you – just call the people who offer 5 year fixed terms to see if they also offer 10 year terms. I bet some do (wink, wink) but they just don’t advertise it.

    Website (doesn’t seem to be running that quick):

    http://www.infochoice.com.au/banking/homeloans/compare/tables/fixed/I/VIC.asp

    Bye,

    Steve McKnight

    **********
    Remember that success comes from doing things differently.
    **********

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

Viewing 13 posts - 1 through 13 (of 13 total)

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