Interest Rate Swaps

Discussion in 'Loans & Mortgage Brokers' started by LibGS, 26th Jul, 2017.

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

    LibGS Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,027
    Location:
    Melbourne, Australia
    I was having a chat with a friend about fixed vs variable mortgages. He suggested using a variable mortgage with an interest rate swap to hedge against an interest rate rise.

    The really interesting thing about this, is that potentially someone with a non deductible owner occupied mortgage could use an interest rate swap and if they lost money on it, they could claim the loss. Is this possible?

    Has anyone used interest rate swaps? I'd like to get your thoughts and experiences.
     
    LibGS, 26th Jul, 2017
    #1