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 70: SPI special episode: buyer’s agent answers more listener questions
Episode 69: Are you a ‘lazy’ investor? Consider the benefits to working with a financial team
Episode 68: Special episode: audience discussion live from the Property Buyer Expo
Episode 67: Don’t get ‘caught up in the now’: an expert reveals his tips for success
Episode 66: Wealth distribution: how should you manage your money?
Episode 65: Real estate agents: what separates the good from the bad?
Episode 64: How this investor learned from a property blunder
Episode 63: Q&A session: the SPI team answers your questions
Episode 62: Property procrastination: the importance of finding help
Episode 61: The ins and outs of strata: what buyers should consider
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