Hi Everyone,
Would like to get other forumites' thoughts on whether they have gone Fixed interest now for 5 years, etc or whether they have decided to stay put with Variable interest on their investment properties. The recent Interest Rate discussion before the Reserve Bank last week I think; made me think whether I should go Fixed interest as the Reserve Bank said it was likely that in May interest rates would rise again.
I know this is the big question & who has a crystal ball, but do you think interest rates will rise 1-2% over the next 3-5 years??? Any ideas.
Cheers!
Col
I fix the majority of my loans Col, though have one that is variable interest only, in that way I know my Monthly payments.
No worries Redwing – Many thanks for your comments.
Col
Hi Redwing,
By the way do you fix for a long time like 5 years or just 1-2 years??
Cheers!
Col
As has been stated fixing the loan can provide the reasuance of what your repayments are going to be, no one can forcast what interest rates are going to be in the future, it would only be speculation.
Some do a balance of fixed and variable loans to hedge their bets, and I guess it all comes down to personal choice. Fixing for too long can make it expensive to get out if the need arises, however if rates go up enough the lender may let you out of the deal so that they can re lend the money at a higher rate. However there is no assurance of this.
I personally believe fixing the loan for 3 years sounds like a safe bet. At the end of 3 years you can fix it again depending upon the market conditions. 5 yrs is a long time.
Hi There,
There is a talk (Foxtel), the goverment is going to increase the IR in May during the budget. So I think it is best for you to fix the rate.
Equity Finance & Mortagages Pty Ltd
Mobile Mortgage Advisor mob: 0413 594 675
Eric [email protected]If there has been talk on Foxtel that rates will go up, then that would have to be a definite wouldn't it? You might like to do a bit of homework too, the Government doesn't control interest rates, the Reserve Bank does. You should know, as a mortgage broker, that there is more to take into account than movements in interest rates when deciding whether or not to fix.
He is good Alistair isnt he !!
Richard Taylor | Australia's leading private lender
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