3 & 5 year fixed rates thread

[Mick C]

I just don't see the appeal of fixed rates for anyone unless you aren't working and never ever intend to sell. The cons seem to outweigh the pros in any situation, particularly for longer-based terms.

I disagree...

"unless you aren't working and never ever intend to sell."

If you not working; i def won't recommend fixing- what happens if your force to sell due to unemployment, family, bills etc?? keep it as variable and have the flex to off load if required.

There are plenty of reasons for someone to fix their rates; and it's not simply because the rate is "considered low" but more

Security and piece of mind- especially if you have a high loan amount ..say total of $1,000,0000 an 0.50% increase in 2 month can = $5,000 PA = $96 a week - a lot of family live on a tight budget- especially investors who "walk closely to the serviceability line"

+ allows for more accurate budgeting and planning; especially for younger families who are going through a lot of change etc..

Regards
Michael

 

[Rixter]

Security and piece of mind- especially if you have a high loan amount ..say total of $1,000,0000 an 0.50% increase in 2 month can = $5,000 PA

I agree. I fix approx half my portfolio holdings (spread across a few lenders) for SANF.

By doing so, rates have to increase twice as much to have the same increase in expenses as if I didnt fix at all.

If rates go up after I fix then I am a head from a cash flow perspective.

If rates go down, then that difference becomes my 'insurance premium' I paid for my SANF.

No matter what investment vehicle one chooses, one should always look towards maximising cash flow and minimising risks.

 

[Rob Williams]

If rates go down, then that difference becomes my 'insurance premium' I paid for my SANF.

No matter what investment vehicle one chooses, one should always look towards maximising cash flow and minimising risks.

I agree.

Trying to maxinise cash flow based on your individual circumstances is a winning strategy. Trying to play the rate game with the banks in an effort to beat them is not.

 

[Aaron_C]

I've seen too many people on fixed rates who want to get out asap but have to incur $20,000+ in break fees just to do so. I never recommend it unless the stars align and it is necessary.

 

[INXS]

According to the link below Westpac were reducing there discounted 3 year fixed rates to 5.89%. Can anyone confirm if this has happened yet?.

http://www.brokernews.com.au/article/second-major-moves-on-rates-129866.aspx

 

[Mick C]

According to the link below Westpac were reducing there discounted 3 year fixed rates to 5.89%. Can anyone confirm if this has happened yet?.

http://www.brokernews.com.au/article/second-major-moves-on-rates-129866.aspx

it will take effect as of Wednesday 13th of June 9 origin night

it's a special discount of a further -0.10% off their 3 years fixed rate only + it needs to be part of the premier package.

1 year - 5.99
2 years- 5.89
3 years - 5.89

P.s 0.15% fixed rate lock fee applies, if required.

Regards
Michael

 

[Rixter]

According to the link below Westpac were reducing there discounted 3 year fixed rates to 5.89%. Can anyone confirm if this has happened yet?.

http://www.brokernews.com.au/article/second-major-moves-on-rates-129866.aspx

Did you look at what the rates are on Westpac's website? That will tell you straight from the horse mouth.

 

[Cherry Pro]

Sure you dont mean 5.89%? Thats whats advertised on their website after premier advantage discount.

Hi - yes, that is correct given the size of our borrowings, but with the latest rate cut, I may well be able to get that rate over 3 years. Will confirm once we have received the new loan docs.

 

[jonmardell]

St George is now 5.79% fixed for 3 years and a $700 refinance rebate.

 

[Shaneelastic]

St George is now 5.79% fixed for 3 years and a $700 refinance rebate.

throw back the 70% commission you rebate its a great deal....

 

[jonmardell]

throw back the 70% commission you rebate its a great deal....

thanks, people fixing 400k would get 1,746 from us plus 700 from St george so total of 2,446!

 

[tvadera]

Fixed at 5.54% (1 year interest in advance) with NAB

Regards,
TV

 

[MikeR]

Any thoughts on Greater Building Society ?

They have 5 years fixed at 6.1%

 

[possumcreek]

Any thoughts on Greater Building Society ?

They have 5 years fixed at 6.1%

Seems a good rate for 5 years. Can't help wondering whether the rates will come down further and whether what's going on at present with Barclays will ultimately bring rates down to.

 

[tvadera]

Looks like a good rate, I have just fixed at 5.54% for 1 year (int in advance), otherwise would have looked into it

I heard from a friend of mine that he may get 5.45% for 3 years from ANZ but only if his pricing request is accepted by the bank

 

[Highlygeared]

Looks like a good rate, I have just fixed at 5.54% for 1 year (int in advance), otherwise would have looked into it

I heard from a friend of mine that he may get 5.45% for 3 years from ANZ but only if his pricing request is accepted by the bank

5.45% in advance or in arears..also interest only???

 

[Aaron_C]

5.45% in advance or in arears..also interest only???

In advance means you pay all your year's interest upfront to get the tax deduction for that year.

 

[silverx]

Any thoughts on Greater Building Society ?

They have 5 years fixed at 6.1%

i am with greater and they seem to be pretty good apart from limited branches they have. the internet banking is definitely better than ing

 

[matto_]

any updates in of people fixed rates. R peeps still in the market to fix?

 

[tvadera]

any updates in of people fixed rates. R peeps still in the market to fix?

Hi,

How many years?
Talk to any broker on the forum and you would get what you are looking for

cheers