Is it time to fix my investment property loan?

April 19, 2017
Adam Broughton

Due to a series of rate increases to interest only; variable rate investment loans this has been the number one question I’ve been asked this week.

My clients have reported rate increases of around 0.40% (Equivalent to an increase of $400 per year per $100,000 borrowed)

So stick or twist?

Pros - A fixed rate could save you some dollars per month; fixed rates with most lenders are currently sitting below the lenders variable rates

During this time of uncertainty a fixed rate will give you peace of mind and will help you avoid the stress of waiting for the next update from your lender.

Cons - Most fixed rate products do not allow you to use an offset account (Although you could hedge your bets and fix a portion of your loan and continue to offset the remaining variable portion).

Fixing your home loan is a personal choice and really depends on your attitude to risk, best bet is to take action, compare the options available then make an informed choice.

Book in a 15 minute chat with me today: https://calendly.com/adambroughtonmc

Posted in: Interest rates

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