Fixed interest mortgage for loan term of 30 yr - is it available

Discussion in 'Loans & Mortgage Brokers' started by Sigemup, 12th Apr, 2019.

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  1. Sigemup

    Sigemup Well-Known Member

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    Hi guys

    Is it possible to get a fixed interest mortgage for a 30 yr term.

    If so what are the implications of that. I know the rate maybe higher than the variable rate. But if I am ok with that, what are the other things about it.
     
  2. Trainee

    Trainee Well-Known Member

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    Suggest you stop reading american property news.
     
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  3. Terry_w

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

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    Max generally 5 years
     
  4. Phantom

    Phantom Well-Known Member

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    No, it's not possible. Even if it was, it would be a terrible idea to fix your rate for that long. There are 1000 things that will happen between now and then & you wouldn't want to put your self in a corner like that with nowhere to turn.

    It would greatly reduce your flexibility & come at a great cost should you want to break the fixed term.
     
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  5. Lacrim

    Lacrim Well-Known Member

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    No such product but if the rate was sub 4%, and I knew I had a keeper, I'd def think about it.
     
  6. tobe

    tobe Well-Known Member

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    It’s certainly possible. But not in Australia.
     
  7. Morgs

    Morgs Well-Known Member Business Member

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    Crazy idea, imagine the break cost if you needed to get out of it after 10 years!
     
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  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    thats why we dont have many greater than 5

    I have worked with several people over the years where break costs were 10 20 and even 60 k !!



    Mortgage backed loans cant be assumed by the new buyer as in the US, thus long term fixed rates are more common there I guess

    ta

    rolf
     
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  9. Sigemup

    Sigemup Well-Known Member

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    Does that mean a house under mortgage cannot be sold before closing the mortgage - is that what it means ? Or is there a way to sell for a profit and pay the mortgage from sale price of the house ?
     
  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    The mortgage secured loan is usually paid out of the proceeds of the sale, so the loan needs ti be paid out at settlement.

    The buyer will get a clear title, with no loan

    ta
    rolf
     
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  11. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Not in Oz.

    1 to 5 years is the norm - with 2-3 year terms probably being the most common.

    Cheers

    Jamie
     

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