Q: How can I find out what mortgage insurance will cost for different lending ratios above 80%?
A: Hi Alison, for mortgage insurance quotes best to speak directly to a Broker so that they can take into consideration the other aspects of the lend as well. I can send you a basic chart which outlines costs just for baseline figures...thanks Craig
Q: My Home Loan has been on a fixed interest rate since I obtained it nearly 2yrs ago. This is due to expire in August and I need to decide to either remain on fixed or go to variable?
A: I don't think you'd lose out if you stayed variable as the cash rate set by the Reserve Bank isn't going up anytime soon in my opinion...the only disclaimer would be that banks borrowing costs are rising and may adjust their rates independent to Reserve Bank. It's also about flexibility, don't fix in for 3 years if you need to sell, refinance or adjust your loan as you will surely lose out!
Q: Should I stick to an interest only loan for an investment property?
A: This has been the strategy for invest props for many years as it allows funds to be freed up for other purchases, hence holding more property in a rising market over 5-7 years. If you are in area of predicted low capital growth in the next 5 years, it may pay to switch to principle and interest to begin to pay down the loan and consolidate and reduce existing debt in uncertain times...