Is it Time for a Fixed Loan?
If you have a variable loan you would be clapping your hands right now with the interest rates that are on the table. If you have a fixed loan and feel a bit disgruntled, remember that you made that decision for a reason and over the period of 25 years of property investing it won’t really cost that much overall.
What is to be considered is whether you should look at locking in a fixed loan rate now. The interest rate is tipped to be reduced again, but is it time to look at either a fixed loan or a split loan (part fixed and part variable).
If you are purchasing new property a split loan may be the way to go. It is tipped that interest rates will go down even further, but it is unlikely that they will drop very much. Let’s face it, they can’t.
“Are the banks going to be offering fixed interest rates for much longer?”
If interest rates do go down too much further this is a question that has to be pondered. There may well come a time when banks will stop offering fixed rates because they perceive that rates have levelled, or nearly levelled and that it will not be long before they start rising again.
This is something you too need to consider.
Filed Under: Interest Rates • Property Investment Tips
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