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I agree that you were being generous with the income to the first home buyer. I suppose my point is that most first home buyers would buy their home at a stretch on a much lower income, but (and this depends hugely on the individual and their job...) they could expect that income to rise as...

Granted but I was replying specifically to WW's post which was using an example of a couple on $82.5K pa. The idea was that in this instance a 2% rise over two years would essentially be negated by 3.5% increases in wages. It was a very simple analogy with plenty of flaws, but I wanted to...

Unless that rise takes 2 years and your first home buyers (young 'uns starting their careers) can manage to get 3.5% pa in payrises, in which case they will actually have more cashflow, and be paying 7% interest... Yes, that's right, their income will have to rise with inflation to be able to...

Not sure who the "experts" are, but I agree. I can't justify paying a 2% premium for a 5 year fixed rate, when the world is in the crapper financially. Maybe it will haunt me in 2 years time, but right now I'm happy banking the extra coin...

Correctamundo. (stupid 10 character minimum requirement...)

The comparison rate is supposed to give you an idea of the actual cost of the loan over a term (normally calculated at 25 years) as a percentage rate. So this would include all fees, ongoing and up front. Good in theory, but the reason it doesn't really help is the following: 1. An annual...

The straight out rate, the comparison rate is a complete waste of time.

WW Is that 12% month on month? If it is, it's clearly a spike caused from outside factors. ABS stats put May's at (seasonally adjusted) 5.4% month on month, and I thought that was high... Noel

WW Strongly disagree with your take on vehicle sales being not muddied by the government. The 50% small business tax break was single handedly responsible for the big spike in vehicle sales in the last 2 months, and in my opinion was as successful as the FHOG in that respect. There is no...

I'm all variable, but I guess I would be happier if I had 5 years at 5.8-6.0% like a couple of the banks had before they jumped up to 7+. I refuse to pay 7% (which is essentailly neutral) when we're in the midst of an economic crisis... I don't like the idea of 3 years, I think you miss...

NAB adjusts their fixed rates At least matching the market leaders now in most time frames...: Hoping the formatting survives. 5.99% for 4 years is sounding alright to me now...:) Fixed rate changes Standard Rates Choice Rates 1 year...

I'm not sure I can hold out With all this talk of increasing yield curves and with Bankwest already increasing their fixed rates I don't think I will hold out much longer. I am waiting a phone call from my banker at NAB. Their 5 year rate is 6.49%. If I can convince her I'm a nice guy and...

The plot thickens! I haven't looked forward to a reserve bank meeting this much since the last one! :cool:

Peter Can't wait to be proven wrong, but I don't share the enthusiasm of everyone else that the banks will start cutting their fixed rates when the reserve bank moves. I agree that 5.99% is likely early in the new year, but I'm nervous we won't get much better than that... Noel

ANZ - Earth shattering deal And ANZ have gone all the way down to 6.84% for 5 years. The banks are certainly showing reluctance to drop these rates too far. I think anything under 6 for 5 years will be a victory.

You can call it a split loan, but it really is two separate loans. Basically the money in your offset, is offset against the variable rate loan. So say you owe $300K, you would put $50K on variable and $250K on fixed. Any money in your offset account will reduce the interest that you pay on...

Eddie Just leave $20k - $50K on variable with an offset, solve all your problems. Get the certainty of fixed rates with most of the flexibility of variable. You can adjust the numbers to suit your particular scenario, but I reckon if you pay $50k extra off your home loan in 5 years you...

Peter Looking forward to be proved wrong! And will gladly eat my humble pie while I lock in and save myself another $10K or so a year! Sash The futures market is great for picking variable rates, but the banks set fixed rates independently and in the next few months you will see the...

Never gonna happen... My opinion only, and I'm hoping I'm wrong, but this is what I reckon: 1. Definitely won't get a 10 year rate with a 4 in front of it. 2. Will be lucky to get a 5 year rate from a serious lender with a 5 in front of it. Maybe high 5's for the 5 year rate, but not...