3 & 5 year fixed rates thread
- Thread starter JIT
- Start date
Another problem with timing fixed rates is that the bank that you are with doesn't drop their rates that low, and if you try and threaten to re-finance to the most competitive lenders' rates they don't play ball, and if you do attempt to re-finance with another lender, the application doesn't go through for any reason.
That's right Rolf. I mean, both fixed and variable rates are incredibly low at the moment given the history of the last 20-30 years, and if someone is fussing over 10 or 20 points for their investment portfolio, one would think they have more serious issues at hand than rate.
The only time Variable (or fixed, for a VERY short time) got significantly lower than now was at the absolute sharpest point of the RBA's "sky is falling" GFC rate cut in 2008. They didnt stay down there for long, either.
For investors seeking to lock in a 2 or 3 year term, its unlikely it will get much better. You can secure a fixed rate in the mid 5's at half a dozen lenders. Getting a variable rate of any meaningful difference below that will for most people require an RBA cut of at least 50-75 points ( and the banks to pass on 40 -60 of it) AND for it to happen soon AND for the rate to stay that low for at least 18-24 months.
The only time Variable (or fixed, for a VERY short time) got significantly lower than now was at the absolute sharpest point of the RBA's "sky is falling" GFC rate cut in 2008. They didnt stay down there for long, either.
For investors seeking to lock in a 2 or 3 year term, its unlikely it will get much better. You can secure a fixed rate in the mid 5's at half a dozen lenders. Getting a variable rate of any meaningful difference below that will for most people require an RBA cut of at least 50-75 points ( and the banks to pass on 40 -60 of it) AND for it to happen soon AND for the rate to stay that low for at least 18-24 months.
Average 3 year fixed rates dropped .2% from July to August.
Interestingly, I phoned Wesuck yesterday. Said I'd like to fix my rates, but didn't like what they had on offer & could they do better. "Oh, I'll see what I can do" the girl said. Came back with a very slightly better rate. I said, that's great, however I could name 4 other institutions that had rates between 5.54% & 5.9%, and that was what I was expecting.
So.....she OK'd 5.59% for me. BUT I'll believe it when I actually get the documentation, so I'm not holding my breath, but hoping that it does come through.
Nah, it's not THAT important. I'll take whatever I get, but would love the extra cashflow.
Maybe it depends on:
How long you've been with them
How high your borrowings are
What your LVR is
If you've got evidence you can do better elsewhere
Who you deal with
What mood they're in
How nice you are to them
If they like you
Or any number of other 'reasons'.
Hi Skater,
Im with Westpac too and I am considering fixing some of my loan. How many years did they offer the 5.59% for?
Also is now a good time to fix? Some are saying yes and some are advising to wait for one more month. Does anyone have any thoughts?
Im with Westpac too and I am considering fixing some of my loan. How many years did they offer the 5.59% for?
Also is now a good time to fix? Some are saying yes and some are advising to wait for one more month. Does anyone have any thoughts?
it is impossible to predict whether now is the best time to fix or in 1 months time but the data is starting to stack up and if a fixed product is suitable for you then imho it is time to start looking. Some people believe fixing is about getting the best rate and "beating" the banks but it is more about risk management.
Some may argue, but they are not making margins - they are 'buying' business.
Three years was what I asked for.
It's anybody's guess whether it's a good time or not to fix. Anything sub 6% is a good rate (heck, anything sub 7% is a good rate) & if I can lock that in for 3 years, then I'm one happy camper.
The risk you take for waiting, is that rates might go up. Of course, they might go down too. Like someone else said, it's all about risk mitigation. The more you have in loans, the more you look to make sure no little nasties can come & bite you on the butt.
Just received the heads up from Citibank that their fixed rates are going up Monday. Their 3 year fixed rate is currently 5.69% with free rate lock so if anyone is in the process of getting a citibank application together it must be in by sunday.
Swaps are moving up.
It's market noise. There is no resolution to Europe. This isn't over yet. Platts is saying iron ore could drop to 105 USD below the theorectical floor of 120. Currently on 115 at 2009 levels.
Hi Skater
Mind sharing more details of loan LVR and if possible who you spoke to at Wesucks ? I spoke to them this morning and their best rate is 5.79% 3 year fixed for me...tks!
