Join Australia's most dynamic and respected property investment community

Lock it in or not?

Discussion in 'Property Finance' started by Ben Murphy, 20th Oct, 2015.

  1. Ben Murphy

    Ben Murphy Member

    Joined:
    26th Sep, 2015
    Posts:
    22
    Location:
    Sydney
    Hi Guys,

    I fixed my ppr three years ago with cba and it comes to an end in June next year.

    This year I have bought two properties one in Bowral (fixed for 5 yrs at 4.38%) and one in Fitzgibbon qld (cba variable). I am going to buy another in the next month as well and just trying to work out if I should lock the Fitzgibbon property in along with the new one?

    I am new to this so any help would be very much appreciated.

    Kind regards,

    Ben
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,765
    Location:
    Perth WA
    I would never recommend fixing anything for 5 years, too much can change and it can be hugely expensive to remedy things if you have to break the loan.

    If you want to lock in a low rate I would suggest 3 years tops. I would also suggest not fixing all your loans - leave some flexible so if you're forced into a corner you have room to move.
     
    WattleIdo and Tranquilo like this.
  3. Ben Murphy

    Ben Murphy Member

    Joined:
    26th Sep, 2015
    Posts:
    22
    Location:
    Sydney
    Thanks Jess
     
  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,143
    Location:
    Canberra and Sydney
    Agree with 5 years being too long.

    I always have this discussion with clients. The general consensus is that it's difficult to plan ahead for 5 years. You might have a good idea of where you want to be....but plans can easily change over a 5 year period and you don't want to find yourself in a position breaking a lengthy fixed term.

    Cheers

    Jamie