Is it time to fix for Investors?

Why you should?

• Provides insurance and comfort knowing your repayments are fixed
• You can lock in for up to 5 years which allows you to project a rate of return on your investment
• There are fixed rates in the 1-3 year fixed space equal or less then the current variable rate

• If you are looking to sell your investment in the shorter term, say 6-18 months, stick to variable and avoid potential early repayment costs
• If you are likely to pay off some debt and make extra repayments, again stay with variable to avoid additional fee’s
• There are some lenders offering cheaper interest only and Principal and Interest variable rates then your current big 4 Bank. I recently saved a client $6,000 per annum by refinancing interest only debt from a Major 4 bank.

• Interest rates are likely to remain relatively low in the immediate future.
• We are seeing a large differential in interest rates between Principal and Interest and Interest Only loans, and this will continue.
• At a recent industry conference I attended, approximately 40% – 50% of lenders are on Interest Only and the regulators want to get this down to 30%. This will mean more increases in Interest Only Rates.
• Principal and Interest home and investment loans will remain very attractive and low, as will Commercial Lending rates.