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Locked in 2 CBA customers on Thursday good timing!

Once its clear that rates have bottomed (rba increasing rates or us rates increasing?) fixed rates would have already jumped up significantly from their lows. You won't be able to wait for this obvious signal and expect to still lock in near this cycles low point. Like when we had westpac...

Not like that in sydney. While I agree the economy is not great overall house prices are definitely on the up in my neck of the woods. Free standing & semis in that $700k - $1.2 range would have gone up by 10% or so since this time last year. Supply and %'s are the drivers. Multi speed...

Just the big bad break fee unknowns. I had one client in about 2009 hit for $30k and abother for $15k odd. Both had locked in at around 9% and had sold properties when rates were at 6% ish. They had no choice but to pay it as had both entered into contracts to sell. I heard of rumors at the time...

You ring them. I can almost guarantee it wont be worth it though they have to make a $ you know ;)

This is my rough estimate remembering they all have a different formula. You can get the formula btw but the cost of funds is the unknown in the future. - If breaking a 4.99% 2 year rate (estimate of costs of funds at origination say 2.99% ie 2% spread). - Then breaking with a year to go with...

Have to disagree there Rolf, I think a bell just sounded loud and clear, bottom of the rate cycle but I've been wrong on this stuff just about as much as I've been right. My thinking though is with those strong employment numbers during the week and general optimism I can see all fixed rates...

Just hope you don't plan to acquire anymore properties as you may struggle to leverage off equity with this lender

Just hope you don't plan to acquire anymore properties as you cant leverage off equity with this lender

Still holding to my recommendation to wait a wee bit more. The money market obviously has not changed its view of the future % rate levels for a while but that can change very quickly.

I am calling next year they will be significantly lower.

Agree there are risks & disadvantages with fixed in general. There are some specific cons to consider with fixing for 1 yr though. - fees at the front end - the revert rate? - fees to switch out after 1 yr if above is uncompetitive. - hassle to redo. I prefer 3 yrs if you are going to...

I think its more of a price signal to the others ie stop lowering your rates fellas

Thought....the lower the variable rates go the more the banks get squeezed on their net interest margin (NIM). All those funds sitting in everyones everyday accounts that they don't pay interest on must add a decent whack to their NIM...the lower rates are in general the less benefit they get...

I am not sure we are at bottom but it's cheap money no matter how you look at it.