I'm evaluating options from my broker and have been presented with the recommended options that consist of two 2-year I/O periods.
I didn't really anticipate this as I believe I can afford P/I rate, and was always planning on saving extra anyway to put as much as possible in the offset.
So in other words, theoretically I will always be contributing an amount more than even if I was on a P/I rate from the start - and I'm very disciplined in saving and not touching money, going on fancy holidays or spending on cars/luxuries etc.
Perhaps the broker got a better overall comparison rate going 2 year fixed compared to loans from other banks? This loan had about $100k comparitve savings to the other two. Considering I also have kids still in daycare (and what comes with those costs) for another 1.5 years. And maybe rates go up for the next 1.5 to 2 years it could provide a slight cushion should things go bad?
Or on the complete flipside is it better to go fixed for the next 3 years? Many that's a silly question.
I'm very new to all of this and it's not an area I'm familiar with being a first time buyer - but I'm very conscious of the world economic climate and wanting to pay this loan off in about half to two thirds of the time.