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When is the right time to fix your loan?

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Lisa Montgomery, When is the right time to fix your loan?

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Fixed rate loans, right now, are at all time lows. There are some great deals out there and lots of competition between the lenders and their very popular now with investors. There're a few things that you actually need to keep in mind when you're choosing a fixed loan and even though the rates are wonderful right now, it's important to ensure that it's going to fit in with your strategy and with how this investment's going to perform for you. If you want to sell that property during the course of the fixed rate period, you need to be mindful that there are going to be break costs and they can be quite hefty. So it's important to consider that before you sign on the dotted line. Also there's additional criteria that surrounds some fixed rate loans, so it's important to understand what's different between that and your variable rate loan or your interest only loan right now. The other thing that's important to note is that some fixed rate loans with some lenders can go on to a higher variable rate when it comes off it's fixed term. So check that rate to make sure that you're going to remain competitive not only now but when it comes off it's fixed term.

 

Listen to other instalments of The Smart Property Investment Show:
Episode 52: Will property prices fall? When? And by how much? What investors need to know
Episode 51: SPECIAL EPISODE: SPI team reveals all the financial details of its portfolio
Episode 50: 8 properties by 25: Former housing commission kid reveals how he changed his life and created wealth
Episode 49: How to build a sophisticated multi-property portfolio
Episode 48: ‘From just $2,000 in my pocket to 6 properties’
Episode 47: The SPI Show answers more listener questions: Special episode
Episode 46: 4 properties by 24 – how to build a portfolio without sacrificing fun, travel or food
Episode 45: Special guest Mark Bouris on what really makes property prices rise and when to invest
Episode 44: ‘11 properties by 31, now I’m stuck: What’s next?’
Episode 43: 22 properties by 30: Can Generation Ys build massive portfolios?
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