Do you have your loans fixed, variable, or a combination of both?

Discussion in 'Property Market Economics' started by PropDir, 8th May, 2022.

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  1. PropDir

    PropDir Well-Known Member Business Member

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    Hello all,

    Given the rise in the cash rate announced last week I was wondering if most of your investment property loans are fixed, variable, or a combination of both - if so, what proportion?

    What do you think might be a good approach to use right now, given that indications are that rates will continue to rise this year?

    I fixed all of my rates late last year (for a 2 year period), and my most recently purchase (which settles this month) is on variable. All on IO which makes the full portfolio cashflow positive.

    Will be good to get your thoughts.

    Thanks.
     
    PropDir, 8th May, 2022
    #1
  2. Angel

    Angel Well-Known Member

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    Everybody's situation will be different, so no one plan will suit everyone.
     
    Angel, 8th May, 2022
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    All variable for me
     
    Terry_w, 8th May, 2022
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  4. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Mostly variable, but I do have some on fixed because it was so low it was too good to pass up.
     
    Peter_Tersteeg, 8th May, 2022
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  5. Silverson

    Silverson Well-Known Member

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    All variable, gotta live a little
     
    Silverson, 8th May, 2022
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  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Most clients with spare cashflow are going the variable piece.

    The spread on fixed to variable for 2 to 3 year rates, its hard to see value.

    Very different with cheap RBA bonds and 1.88 or less 2 year fixed rates just under 2 years ago when these started to become available.

    Risk averse or cashflow challenged folk buying PPORs are still choosing part fixed even though its likely that variable will be lower cost over the fixed term. This is because they have a max affordable repayment to maintain lifestyle, and are willing to pay the extra from day one.

    ta
    rolf
     
    Rolf Latham, 9th May, 2022
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  7. Morgs

    Morgs Well-Known Member Business Member

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    Personally all variable with offsets; funds come in and out when we do development projects so wasn't any point in fixing at the low rates for us.

    For our clients we went from approx. 80% of apps as fixed/split through COVID to now only about 10% of apps as fixed/split.
     
    Morgs, 9th May, 2022
    #7
  8. KJA182

    KJA182 Well-Known Member

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    all fixed, but did so 3 months - 1.3 years ago. Laughing at media articles about a .25% rate rise

    Will laugh even more if/when rates get to 2%+
     
    KJA182, 12th May, 2022
    #8
  9. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    You find that Funny...
    [​IMG]
     
    TheSackedWiggle, 12th May, 2022
    #9
  10. sash

    sash Well-Known Member

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    40% rates fixed in 2021 for 2 years mostly under 2.3%. Others all variable anywhere from 2.57% to 3.29%. some will go up 0.25%
     
    sash, 12th May, 2022
    #10
  11. PropDir

    PropDir Well-Known Member Business Member

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    Funny how?
    Funny how like a clown??

    Am I here to amuse you? Do I make you laugh??
     
    PropDir, 12th May, 2022
    #11
    TheSackedWiggle likes this.
  12. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    I got my mortgage fixed, my mortgage fixed."
    – KJA182 Two-Times
    ;)
     
    TheSackedWiggle, 12th May, 2022
    #12
  13. KJA182

    KJA182 Well-Known Member

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    lol i dont get the reference
     
    KJA182, 12th May, 2022
    #13
  14. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    oops.... I assumed you to be a goodfellas fan :)
     
    TheSackedWiggle, 12th May, 2022
    #14
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