All Topics / Finance / Changing to fixed rate mortgage.

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  • Profile photo of charles766charles766
    Participant
    @charles766
    Join Date: 2017
    Post Count: 1

    We bought our deluxe apartment on a mortgage loan. It was bought at 10 percent downpayment for a period of 15 years. We opted for variable rate mortgage. I was thinking about changing to fixed rate mortgage when the rate gets the lowest. I read on this blog on the things to be aware of when you switch to a fixed rate loan. https://www.butlermortgage.ca/mortgage-news/going-from-variable-rate-mortgage-to-fixed-what-you-should-be-aware-of/ They say the lenders may try to hide the best rates. Has anyone converted from variable rate to fixed rate mortgage and felt it was useful?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    The link relates to Canadian Mortgages so some of the wording might not be accurate here in Australia.

    With lenders hiking their investment variable rates you may well find that a fixed rate is more attractive going forward.

    Whether it is right for you will depend on a number of factors including your risk profile etc.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

    Profile photo of Ethan TimorEthan Timor
    Participant
    @ethantimor
    Join Date: 2016
    Post Count: 282

    We bought our deluxe apartment on a mortgage loan. It was bought at 10 percent downpayment for a period of 15 years. We opted for variable rate mortgage. I was thinking about changing to fixed rate mortgage when the rate gets the lowest. I read on this blog on the things to be aware of when you switch to a fixed rate loan. https://www.butlermortgage.ca/mortgage-news/going-from-variable-rate-mortgage-to-fixed-what-you-should-be-aware-of/ They say the lenders may try to hide the best rates. Has anyone converted from variable rate to fixed rate mortgage and felt it was useful?

    Fixing rates has both pros and cons. I’m sure you could find lots of discussions about it both here and by searching online.

    Will the bank hide their best rates? Perhaps. Why wouldn’t they? It is also very possible that out of the thousands of loan products that are available in the market, your bank doesn’t have the one that would most suit you.

    I’m biased of course but even before I was a broker, I was (and still am) an investor and I’ve always used a broker. It’s great having a finance pro on your team 👍😎

    Ethan Timor | Aligned Finance Pty Ltd
    http://www.alignedfinance.com.au/
    Email Me | Phone Me

    Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)

    Profile photo of blackhotelblackhotel
    Participant
    @blackhotel
    Join Date: 2010
    Post Count: 140

    Fixed rates – the banks always win! They know more than you before you are even told about it!

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Applying that current logic then blackhotel you are suggesting the variable rate over the next 3 years is going to fall ?

    I have to disagree with you. We saw yesterday lenders increasing variable rates by 25 bps out of cycle from the RBA and this is the start of things prior to Basel 4.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

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