My investment property P&I loan with Westpac is expiring soon and I have a choice to go variable at 4.48% or to refix it at 4.49% 1 year or 3.89% 2 years.
I do not know if I should wait out for the rate cut I've been hearing about and even if it's cut, not sure if it will impact the fixed rates. Refinancing is not an option at present until APRA does their proposed thing.
I would appreciate advice and seek the wisdom of the OzBargain collective.
Thanks
Thanks - I do intend to hang onto it for the next 24 months at least.
Wouldn't part of this be subject to the nature of your investment property?
If it is a rental property, then I imagine you have probably negatively geared the investment and as such you should run the numbers for the Westpac options and decide what is best for you in that regard.
True - it would be close to positive-ish at the 2 year fixed. The certainty of cost would be a plus
The variable rate you are being offered is too high for P&I. You can do much better even for an IP
true- but seeing that I am not considering refinancing, kinda stuck with them
Negotiate harder!
I'm in the same boat. Investment P&I fixed rate coming to an end. Got offered 4.5% variable or 3.89% 2 yrs fixed from NAB so pretty close to your offer. The variable rate is not very competitive (eg. Macquarie is 3.74% for IP).
So which option you gonna take ?
Probably fixed.
No offset account if you fix and if that's what you need.
The fixed rates already anticipate the rate cuts. As you can't refinance, the 2yr rate is likely the best you can get. If you intend to keep the property for at least that long I would fix.