Fix & Interest only

Viewing 11 posts - 1 through 11 (of 11 total)

tuggerwaugh
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@tuggerwaugh
Join Date: 2007
Post Count: 192
February 21, 2009 - 11:25 am
quick question… Can I fix my loan for 3-5 years and pay interest only during this time? Any help appreciated. Cheers
Chris
v8ghia
Member
@v8ghia
Join Date: 2005
Post Count: 871
February 21, 2009 - 11:38 am
Yes tugger – that is no drama at all. When it comes to the end of the fixed term I/O it will normally revert to P&I in most cases, and go to the standard variable rate unless you switch again after your forst 3-5 year term. While the 3-5 year rates fixed are in the low ti mid sixes (%) it is some serious food for thought isnt it?
All the best
Cheers
tuggerwaugh
Participant
@tuggerwaugh
Join Date: 2007
Post Count: 192
February 21, 2009 - 11:49 am
Thanks for that…with GE not dropping their rates I think we will take the get out clause and refinance with Aussie Homeloans, fixing for 5 years and paying interest only on our IP's.
Cheers
tugger
god_of_money
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@god_of_money
Join Date: 2008
Post Count: 970
February 21, 2009 - 12:50 pm
why you go with GE initially?
tuggerwaugh
Participant
@tuggerwaugh
Join Date: 2007
Post Count: 192
February 21, 2009 - 9:39 pm
Well i went through wizard and thats the deal they got me…has been pretty good on interest rates up to now
Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
February 22, 2009 - 5:38 am
Tugger
Given the current market not sure i would fix quiet yet.
There are some good variable deals around with 100% offset and you can always split the loan fixing some and having some variable with offset.
Richard Taylor | Australia's leading private lender
tuggerwaugh
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@tuggerwaugh
Join Date: 2007
Post Count: 192
February 22, 2009 - 7:48 am
G'day Richard…
Yeah based on the current market we wouldn't fix yet but perhaps at the end of this year or early 2010. Do you think rates will remain steady for the next 12 months? Thats my belief so hopefully we can take advantage of low variable for the next little while.
Cheers
tugger
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
February 23, 2009 - 4:43 am
I heard that GE clients are able to refinance with Aussie with no break costs for the next 12 months.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
February 23, 2009 - 5:10 am
Rams have just announced a 5 year fixed rate at 5.99% and a 10 year fixed rate of 6.19%
It is getting very close to being attractive to start putting away a few more properties and taking a longer term perspective again.
Richard Taylor | Australia's leading private lender
tuggerwaugh
Participant
@tuggerwaugh
Join Date: 2007
Post Count: 192
February 23, 2009 - 9:05 am
G'day guys…
thans for the replies….. I spoke to my broker at Wizard today and there are some dodgy things going on….the worst being that when we refinance under the GE loophole we may get whacked with LMI for the second time on the loan….what crap
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
February 23, 2009 - 10:56 am
SGB have just launched 5.74% fixed for 5 years.
Richard Taylor | Australia's leading private lender