Fixing interest rate for BoM

Discussion in 'Loans & Mortgage Brokers' started by glasszon, 23rd Jan, 2018.

Join Australia's most dynamic and respected property investment community
Tags:
  1. glasszon

    glasszon Active Member

    Joined:
    21st Oct, 2015
    Posts:
    33
    Location:
    Melbourne
    I am looking to fix the interest rate on my mortgage with Bank of Melbourne but the banker said that if I fix my mortgage, the discount that I got on the variable rate would no longer be applied at the end of the fixed period so I can be looking at a high rate increase unless I apply for and be granted with the discount at the end of the fixed period.

    Is it true and are there ways around that? I really want to fix my mortgage to get a lower interest rate but I am in a segment that has been hard hit by APRA (Interest only investment loan) that I am not sure they will grant the same discount for variable loans at the end of the fixed period.
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,598
    Location:
    Gold Coast (Australia Wide)
    typically, they will make for a similar discount at completion of the fixed rate.

    But much comes down to what the competitve enviro is like at the time.

    Some banks will honour the current discount when the fixed expires - eg cba

    ta
    rolf