Well i don’t know if this applies to many out there. But what’s the best move if you had fixed your mortgages and now the rates have started to drop.
Well i have, 12 months ago, some for 5 years (4 remaining) and some for 7 years (6 remaining.
I called the bank and ask the question, what is the Brake cost should i want to change from fixed to variable, well lucky i was already sitting down.
$98,000 yes that’s the fee to brake 5 loans, no that’s not the loan amount, that is the penalty to move from Fixed to variable.
Well i said thanks but no thanks.
What can one do at times like 12 to 15 months ago when the experts where saying the rates could go throw the roof, and now the same are saying it could go to 2%.
12 months ago i made a decision to fix at 8.2% as i knew i would not be able to afford it at 9.5 or 10. And i was on the right track as the rates increased 3 more times, and the banks increased the rates without the RBA increasing them.
The way i see it i was ahead one year, no i could be behind maybe one to 2 years.
Can anyone tell me if there is anything that i could be doing better than staying in the current contracts and making the payments? Or should i look at braking as there is a chance the rates could go much much lower.
