Wrote another post about a few things but getting great advice on how to structure new and current loans...so I thought I'd create a topic specfically on loan type.
I will be taking out a new loan for an investment property I have just purchased. It will be IP for 5 years before becoming PPR...and my current PPR will become IP.
Considering there is a good chance the lenders will be raising interest rates before the RBA makes a move...and rates are looking only up from here...is the consensus for a new loan for settlement in late October to be full variable, full fixed or split?
What I'm thinking is, it's around 2 to 2.5 percent difference between a discounted variable and a 5 year fixed loan today. That's a $12K gamble per year based on a $600K loan but decreasing depending on how much and quickly rates rise.
I will be taking out a new loan for an investment property I have just purchased. It will be IP for 5 years before becoming PPR...and my current PPR will become IP.
Considering there is a good chance the lenders will be raising interest rates before the RBA makes a move...and rates are looking only up from here...is the consensus for a new loan for settlement in late October to be full variable, full fixed or split?
What I'm thinking is, it's around 2 to 2.5 percent difference between a discounted variable and a 5 year fixed loan today. That's a $12K gamble per year based on a $600K loan but decreasing depending on how much and quickly rates rise.