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Variable Interest, Fixed Interest or both. Whats the best in the current climate???
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Started this discussion. Last reply by jacquesk Aug 11, 2009.

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Sharmo and JeffK are now friends Nov 25, 2009

jacquesk replied to Sharmo's discussion 'Variable Interest, Fixed Interest or both. Whats the best in the current climate???'

Just thought this might be of interest. http://business.theage.com.au/business/fixedrate-mortgages-back-in-demand-20090810-efnk.html

Aug 11, 2009

jacquesk replied to Sharmo's discussion 'Variable Interest, Fixed Interest or both. Whats the best in the current climate???'

Exactly! That is why you would fix a sizable portion of your loan. Lets say you locked in 75% of your loan into a fixed rate. If interest rates go up then the portion locked in at the lower rate (75%) is unaffected. The portion that remained on the…

Aug 6, 2009

JeffK replied to Sharmo's discussion 'Variable Interest, Fixed Interest or both. Whats the best in the current climate???'

I'm with Bandwidth on this one - I reckon the probability of rates going down is next to nothing, however there is a chance that they could spike up. Although Jacquesk is right about you being able to pay off the variable portion without being…

Aug 6, 2009

Bandwidth replied to Sharmo's discussion 'Variable Interest, Fixed Interest or both. Whats the best in the current climate???'

Hello Sharmo My thoughts are mostly based on pobability. The probability that rates go down is low and the probability they will go down lots is lower. The probability they will go up, in the near future is medium to high and the probability for…

Aug 4, 2009

jacquesk replied to Sharmo's discussion 'Variable Interest, Fixed Interest or both. Whats the best in the current climate???'

I think I would be inclined to go for it and fix the majority of your loan. I do not think interest rates will go lower. I would consider fixing 60 - 75% of the loan. The prob with fixing your loan is that you cannot pay it off any quicker therefore…

Aug 4, 2009

Variable Interest, Fixed Interest or both. Whats the best in the current climate???

I have been lucky enough to be able to have bought my first home in the right time. But as the decreasing interest rates have now stalled and all indications from the media saying they are on the up soon, what is the best scenario to be in? Fix in 100% of my loan, partially fix the loan(what is best mix e.g. 40% fixed/60% Variable), or ride the rollercoaster of the lower variable?My feelings are to partially fix the loan so i can "hedge my bets" and try to save money, but i just dont know how…See More

Discussion posted by Sharmo Aug 3, 2009

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Keith Musgrave replied to Nikky Simpson's discussion 'My Rate'

Hi Nikky, Apologies for the delay, I have been away on hols and a little time off due to illness. All better now. Has your' lender dropped their rates any further since we last communicated? Depending on your' total debt amount, you should…

Oct 20, 2011