podcast

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 61: The ins and outs of strata: what buyers should consider
Episode 60: The pros of using a buyer's agent: why this investor brought someone in
Episode 59: How to invest in property as a team: two investors share their secrets
Episode 58: When do you stop investing? The SPI Show answers more listener questions
Episode 57: Wealth creation through property: trends and themes to think about in 2017
Episode 56: The SPI Show accountant reveals all: How to pick your financial team
Episode 55: The reluctant property investor: How necessity drove an 18-property portfolio
Episode 54: The SPI Show Q&A: Listener questions answered honestly
Episode 53: 6 properties in 2 years: how this investor is achieving his goals
Episode 52: Will property prices fall? When? And by how much? What investors need to know
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