I’m[blush2] about to lock in a new loan. My financier says is better not to fix rates as if I want to get out in less than 3 years will have to pay penanlty fees.
Thing is I do not intent to get out.
Any thoughts?
Hi Cloudancer,
To fix or not is a dilemma often contemplated by investors. If you need to peace of mind and security of knowing what your repayments will be for the next three years then by all means fix your loan.
Yes you will need to consider break costs if this applies however three years is a reasonably short time investment time frame.
Personally I wonder if you have missed the boat in terms of the optimal fixing window.
Derek
[email protected]
0409 882 958
Property investment advice and researched property in quality locations available.cloudancer
“Thing is I do not intent to get out.”
easy answer….DON’T!
Oscar
You never know when you will need to change banks. You may sell the property or you may want to refinance with another another lender in a year or so. I don’t fix any of my own loans anymore – after I sold a property and had a huge break cost of about $4000
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]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
I thought fixed interest loans were totally inflexible and was going to refinance to access equity.
But I checked with current bank and they were able to do loan increases on new valuations and even an LVR increase to 90% relatively cheaply. Couple a hundred for some changes.
Are there fixed interest loans that are portable to another property?
Live, Learn and GrowLifexperience
Yes if you have a fixed loan, you can always increase your loan limit (usually would be at a different rate) with your existing lender. But sometimes you may have to go to a new lender unexpectedly. eg. you want to access the equity, but you don’t service with that lender.
Many loans are also portable. so you may be able to take your fixed home with you if you sell and buy a new property.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]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
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