Lock it in or not?

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

 

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.

 

Thanks Jess

 

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