RBA gives APRA’s use of macro tools a tick of approval
Ahead of an expected move to impose tougher lending rules on the banks, the Reserve Bank has looked into previous attemp...
Lisa Montgomery, When is the right time to fix your loan?
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.