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Yes, but this is fear is good to have (if there is such a thing :p). I need to stick to my risk-control strategy regardless of what i THINK is likely to happen and when i THINK it's likely to happen. Is that because i'm particularly dumb & my guesses are less valid than others (eeasy on!)? No...

I guess your risk tolerance depends on your exposure, JIT but i agree with your thinking. 6.99% is still below the historic average and I would argue is still a "good" long term rate. I would have fallen over myself about 12mths ago to fix everything for that. 5 years is a long time in the IR...

I've been noticing quite a few posters on this & related threads refer to "missing the boat" on fixed rates. I fixed all mine 5-10yrs at 6.19, and if I'd been able to do it a couple of weeks earlier I'd have some at the "bottom" of 6.09... But missing the apparent "bottom" of the cycle doesn't...

^I agree. Green is apparently the new black; haven't you heard? :rolleyes: Very hard to reconcile the peak rates & the steepness of the yield curve with reality. Even the optimistic RBA has (last month) forecast underlying inflation of 1.5% by end of 2011. There is a great chasm between that...

^Agreed. All my fixing is done, except 1 chunk that doesn't come off until early 2010. Bit worried about how high 5yr rates will be by then. As I have mentioned before, what interests me is whether the long-term rates have permanently decoupled from the cash rate. I guess time will tell...

There may well be no reason for you to ever fix rates in your big picture, stockt12. Some members have multiple 6 figure borrowings and fix rates as insurance / surety of future repayments. It's not about trying to "beat" the variable rate.

I am dithering about fixing more of my loans to 5 yr rates largely because I'm surprised that long-term money is still trending so high. By that I mean that I'm surprised the market seems to agree on an inflation break-out to come.....Or does it? Is the price predicated on future inflation...

Apologies if this has already been posted but I just noticed that published 5 yr rate on the Westpac site is now 6.29% rather than 6.49% when I last looked. That means 6.09% on pro pack and only 0.1% to go until it finally has a 5 in front. :)

Great news, JIT. There is still a glimmer of hope, then. I am biting the bullet on the 10 yr RAMS rate for one IP but sitting on the others for now....

:eek: What was it before? I have been praying that this doesn't start happening, but there seems to be an unusually big spread between 3 & 5 yr rates. Westpac looks like 1.1 % difference! Perhaps the bankers have been coming here & realise it's the 5 year money we're all waiting for.

Yup, this is why I had a property on fixed rate with Adelaide. Of course, 4-5 yrs ago their fixed rates were very competitive. Now it's a different story. 'Nother lesson learned...

I have noticed that for all my talk of fixing, I find myself holding out for Westpac to go sub-6% for 5 yrs- Even 5.99% would be "enough." Part of me thinks I may as well be whistling Dixie; but the other part says people won't be rushing in to fix at 6.49% with the SVR so low so no hurry. It's...

That's interesting; I haven't heard that figure, thanks. Because I'm an old fart, obviously, :p I like to rely on older data than the last 8 years, which (apart from the RBA's 2008 rate raising bonanza) which was a time of very low rates. See the chart at bottom...

^This has been my experience with a couple of banks. One offered to roll over the loan into another fixed rate & if I did it before the expiry period I would escape the $250 fee. Of course, the new fixed rate they offered was more than the last & much more than the variable so i declined...

Very interesting Keith; thanks. Hopefully my vals will hold up so I can refinance onto fixed rates ASAP

You are braver than I, crc_error. Some of us are just happy to bank on being able to fix below the historical average. Plus the cost of long-term funding seems to have affected the banks' ability to drop fixed rates anywhere near variable. If this situation doesn't improve, it's possible that...

Maybe not. I was quoted 6.19% for 10 yrs at RAMS...

What he said. :) Was speaking with my MB this morning about this exact thing. Just split the loan into a few different accounts & fix parts at different times. Theoretically this spread could be seen as a loss minimisation strategy rather than a profit maximising strategy. If you have a large...

Macquarie Bank have released their fixed rates, which are as high as 7.19 for 3 yrs and 7.49 for 5 years. This is a full percentage point higher than some of the majors.:eek: I hope they manage to get some cheaper funding sometime later this year or I'll have to move....Actually, i don't know...