How long should I fix my home and investment loan interest rates

[Wayne]

That doesn't change my answer... Crunch the numbers.

For a 5 year term you either crunch the numbers with a lot of asumptions or do it after (and too late) when you know future interest rates.

[primal]

So you take most of your loan from one bank when buying a new investment.
So you don't deal with any mortgage brokers
Doesn't all investor's say not to put all your eggs in one basket.

Don't forget, you can always break a fixed interest loan.

I recently broke a whole lot of loans, it cost me $5,000. A lot, yes, but it saved me $15,000 over a 1 year period.

So if you fix for 6 months, or a year, and rates go down, down be afraid to break it and fix for (say) 5 years on a super low rate if the opportunity arises. Crunch the numbers.

I prefer to deal with the banks directly. Build up a relationship. I am also willingly in the 'One-Bank-Trap' which many people advise against. It works for me. I display loyalty to the bank, and they treat me as a 'Big Player' because I have sizable loans with them. I get offered at least 0.6% off the rate displayed on the Bank website, and that's without any negotiating.

Phone the bank. You don’t get if you don’t ask.

[FJW]

Hi, this might be a re-occuring question but I will ask it anyway since I am at this cross-road at the moment.

I have home loan 500k + and investment loan 300K+ both are on floating at the moment. Question is how long should I fix both of them for considering short and long term interest rates are very low.

I can get:

Term: 6 months | Rate Offered: 4.80%
Term: 12 months | Rate Offered: 4.35%
Term: 18 months | Rate Offered: 4.45%
Term: 24 months | Rate Offered: 4.45%
Term: 36 months | Rate Offered: 4.75%
Term: 48 months | Rate Offered: 4.99%
Term: 60 months | Rate Offered: 5.09%

From the experienced people in this forum what should be the best strategy for both loan.

Thanks in advance for your answeres.

Hi Kjoshi

I'm no mortgage expert but my advisor has said fix for four to five years....I've just done that so have taken his advice on it....he reckons they wont get any lower than what they are at present but he doesn't have one of those crystal balls that I've been searching for on trade me for the last decade

Hope that helps

[kjoshi]

Thanks for all the advise guys. How about splitting 50/50 into 3 years for 4.49% and 5 years for 5.09%. Please advice which should be interest only investment loan. 5 year fix or 3 years fix. Cheers

[ATM]

Hi Kjoshi

I'm no mortgage expert but my advisor has said fix for four to five years....I've just done that so have taken his advice on it....

Just out of curiosity. Does anyone know whether mortgage brokers get more commission from the bank if the customer (home owner) fixes for longer terms? (e.g. above 2 years (3 to 5 years)?