The forums are being retired.
After many years of great discussion, we've switched off new topics and replies. Every thread stays right here though, so you can still browse and search the whole archive any time.
For up-to-date chat with fellow investors, come join us on Facebook:
Wrote another post about a few things but getting great advice on how to structure new and current loans…so I thought I'd create a topic specfically on loan type.
I will be taking out a new loan for an investment property I have just purchased. It will be IP for 5 years before becoming PPR…and my current PPR will become IP.
Considering there is a good chance the lenders will be raising interest rates before the RBA makes a move…and rates are looking only up from here…is the consensus for a new loan for settlement in late October to be full variable, full fixed or split?
What I'm thinking is, it's around 2 to 2.5 percent difference between a discounted variable and a 5 year fixed loan today. That's a $12K gamble per year based on a $600K loan but decreasing depending on how much and quickly rates rise.
Gidday Noisuf,
Rate type is a part of the structure conversation and fixed rates are about buying certainty, not saving in interest, so you have the tiger by the tail.The price of this insurance is currently a tad higher than 2.09% p.a. assuming you grab and lock the NAB-Homeside rate at 7.09% or add 0.10% for NAB Retail. Next stop is 7.29% with Heritage…
I had a quick look at your other post which seems a little chaotic. You probably should discuss your underlying strategy with your accountant before you structure your loan as your objectives are a bit hit an miss. i.e. negative gearing is usually a side effect of an investment strategy rather than the heart of it.
The easiest thing for you to do would be to just take the ANZ pre-approval, but it's unlikely to be the smartest thing. The deal you have with them is kind of okay (@0.7% off, you should be on 5.11%), but you probaly should at or below the 5% mark on variable for an effective rate.
Depending on a bunch of factors you haven't listed (i.e. a clear map of income/liabilties), there should be no issue taking the the new loan with a different lender to ANZ, but again, you are way short on detail and this is probably not the place to post it.
