Thanks for the advice Rolf .... much appreciated.
3 & 5 year fixed rates thread
- Thread starter JIT
- Start date
Thanks for the advice Rolf .... much appreciated.
Things have changed at Westpac again. Crunched the numbers again and 5.99 will be very difficult. They have improved my break costs as per my other thread but.
They will honor my 5.99% offers that I have the paperwork for in front of me now.
My additional 5.99% request has gone up the food chain. Might have to be a tad over 6 this time.
Watch this space.
They will honor my 5.99% offers that I have the paperwork for in front of me now.
My additional 5.99% request has gone up the food chain. Might have to be a tad over 6 this time.
Watch this space.
All my ip,s have split fixed/variable loans so I have a buffered interest repayment when variable rates move and I still maintain flexibility.
The above loan is just finishing a 7.25% period so whatever I get will be an improvement. My wife will be working part time while at home with our first child for a few years now so repayment certainty is what I am chasing over just $$$.
That said I will negotiate hard with the bank. I'm not going to just roll over and take it.And I enjoy the haggle.
Sure, for certainty it's a good idea. I think it's better to fix half the number of loans rather than fix half of each of your loans - so you retain some flexibility at least if you need to access equity/sell.
Good point re: fixing half of the number of loans rather than 50% of each loan. Hadn't considered the implications re: selling up an IP.
I just had at a look at the RBA's historical data for the 3 year fixed rates and SVR, it's here if anyone is interested:
http://www.rba.gov.au/statistics/tables/xls/f05hist.xls
After doing my own analysis I'm going to fix a small loan at the 3 year rate of 6.1-6.2%. Just a risk mitigation strategy I guess. This loan is only about 15% of my total lending (of $999k lol... just short of $1m in loans!), but the plan is to fix another loan at a good 5 year rate, hopefully around the 6.5% mark. Not putting all my eggs into one basket yet but slowly diversifying, I guess.
I just had at a look at the RBA's historical data for the 3 year fixed rates and SVR, it's here if anyone is interested:
http://www.rba.gov.au/statistics/tables/xls/f05hist.xls
After doing my own analysis I'm going to fix a small loan at the 3 year rate of 6.1-6.2%. Just a risk mitigation strategy I guess. This loan is only about 15% of my total lending (of $999k lol... just short of $1m in loans!), but the plan is to fix another loan at a good 5 year rate, hopefully around the 6.5% mark. Not putting all my eggs into one basket yet but slowly diversifying, I guess.
I fixed about 60% of my for 3 years at 7.1% in January 2011. Whilst I am now missing out I have insurance and sometimes "we can't see the forest for the trees". That is, 7.1% is historically low.
The wisdom is to leave one or two IPS free to sell if the event you get in a tight spot.
Regards
Peter 14.7
The wisdom is to leave one or two IPS free to sell if the event you get in a tight spot.
Regards
Peter 14.7
hindsight be a wonderful thing............further, one of my biz mentors says, if u drive your car by the rear view mirror you are likely to have a lot of crashes ........
Or as Tony Robbins so eloquently says......we should have all over ourselves.
so the decision was right at the time !
ta
rolf
6.05 is the best they will do for a 3 year so close enough. And they have lowered the break cost more. All up I'm now 50 bucks pw better off and cash-flow neutral on my lemon IP.
That's good enough for me.
Just enquired with Bankwest for a fixed 2 year rate. 6.69%!
That's higher than their variable.
Which is normal since most yield curves are upward sloping. Looks like the fixed rate party is over.
If that is replicated more broadly, that is a good signal that not only the Aus but global economy is getting over the worst.
Hi all, thinking about fixing for 3 years on one IP loan. Probably is, my mortgage provider is only offering 6.49% for 3 years. Can anyone tell me if you need to pay mortgage stamp duty again if you change lenders, and what other costs are associated with switching to a new lender? The loan amount is $242000.
Cheers, Ali
Cheers, Ali
Just had it confirmed that WBC will be raising fixed rates tomorrow (20th) between 10 & 14 basis points.
