3 and 5 year fixed rate thread

[euro73]

and amp's rate are generally not the cheapest -they are mid point...but they do offer some unique/niche policy.

and yes 5.09% fixed for 2 years with AMP is impressive ~ as they don't neg.

I use them a lot for investors- particularly as the hub product secured by the investors PPOR. order upfront vals. 10 splits. 10 offsets. etc etc... really fast turn around for the past few months. 3-4 days to unconditional in most cases. Their servicing is excellent , their cash out "ask no questions" policy is excellent. Their master limit product is superior to their competition, the STG Portfolio , at the moment because their products are a little sharper.

Horses for courses. They werent always this sharp - they're enjoying a little purple patch.

Oh, and they gave me 5.09% on a fixed rate deal last week

That's why I use them quite a bit

 

[Nth Brisbanite]

Banks to lower rates outside the RBA cycle

Interesting article today on 4 big banks possibly lowering rates outside the RBA cycle. Do you think that they will do it?

http://www.news.com.au/realestate/i...-to-make-history/story-fndbarft-1226547834986

 

[euro73]

6 basis points? Wont really change anything

 

[Rolf Latham]

Interesting article today on 4 big banks possibly lowering rates outside the RBA cycle. Do you think that they will do it?

http://www.news.com.au/realestate/i...-to-make-history/story-fndbarft-1226547834986

so giving back like a little of what they have kept back

WBC can clearly afford to hand off at at least 9 points seeing they are running full service businesses in SA and Vic that are running that much lower than the rest of the country.

Let commercial reality decide and lets move on.



ta
rolf

 

[Rolf Latham]

3years now at 5.19 with ME

1 year sub 5.


Looks like the fund managers are pricing in further rate redns on the RBA cash rate



ta
rolf

 

[luckyone]

Thanks Rolf, that's good to know. Do you know if other banks will match fixed rates?

 

[Rolf Latham]

case by case and week by week depending on the deal lenders will do anything.

Having said that, dont be surprised if an existing lender wont go far until they see a mortgage discharge request for a refinance.

ta

rolf

 

[luckyone]

Thanks for the tip Rolf, might have to do that. Might be pushing it though given that the one I want to fix is at 95% lvr.

 

[tobe]

Thanks for the tip Rolf, might have to do that. Might be pushing it though given that the one I want to fix is at 95% lvr.

ahhh, yup, Id say you got buckleys, unless you have a bunch of other lower LVR loans with the same lender. You might have a chance with one of the big four if you switch to their pro pack and pay $400 per year. Most then discount fixed rates .15% or so off their advertised rate.

 

[zapoix.]

Re finance

Are there many banks going under /5.06 interest rate
Was with rams @ 6.1 now going to refinance with CBA
@ 5.06 on a 1.2 mil loan over 3 property's
Just wondering if I can find a better rate or is this about my best shot

 

[The Fence]

zapiox, are you talking termed or variable rate ?

 

[zapoix.]

Variable rate interest only first 5 years

 

[Rolf Latham]

Are there many banks going under /5.06 interest rate
Was with rams @ 6.1 now going to refinance with CBA
@ 5.06 on a 1.2 mil loan over 3 property's
Just wondering if I can find a better rate or is this about my best shot

5.06 = 1.34 % discount.

I call that, and would like to see it on paper.

1 to maybe 1.1 I can swallow, at 1.34 the ROI to CBA is well under 10 % and they wouldnt bother, even at an LVR of 60 %.

But then, if they are suggesting to cross 3 properties its likely that your broker/banker has other "pixie dust" stories.

ta
rolf

 

[zapoix.]

Miss information

5.06 = 1.34 % discount.

I call that, and would like to see it on paper.

1 to maybe 1.1 I can swallow, at 1.34 the ROI to CBA is well under 10 % and they wouldnt bother, even at an LVR of 60 %.

But then, if they are suggesting to cross 3 properties its likely that your broker/banker has other "pixie dust" stories.

ta
rolf

Must have been tired last post
Westpack came back with 1.04% discount from 6.10 down to 5.06%
No idea why I said CBC on post

 

[Rolf Latham]

I expect then that the rate will actually be

5.47

Based on

WBC rack rate 6.51

Apply Premier Advantage ( normally .70) in your case 1.04 for and end rate of 5.47 which sounds about right for over a mill @ wbc.

Still...............dont cross to the dark side and cross coll your places. Might seem simple attractive and convenient.

Some reasons in the link below. Others could be added to that very old post

http://somersoft.com/forums/showpost.php?p=120656&postcount=6

Ta
rolf

 

[zapoix.]

Thanks Rolf
I will certainly make sure we do not cross Coll our loans

Doing all the sums I think that I can save about 5k in interest pa
Still not sure weather to fix interest on our new refinance.
Have never fixed my interest rate and are not sure weather they have bottomed out yet.
Or is fixing as so many here say for SANF

 

[Rolf Latham]

Doing all the sums I think that I can save about 5k in interest pa


Still not sure weather to fix interest on our new refinance.

the first one is a no brainer

the second one needs consideration not just on the obvious factors that you have mentioned, but also

1. Will you maybe need to sell or refinance during the fixed rate period ? Be mindful that sometimes if you havent managed some of your other risks "properly" ( ie income protection insurance , maintaining employment versatility, a pair of unexpected twins etc ) the propensity of needing to access "challenge or opportunity money" during the fixed rate period is higher than we think.

2. Poorly thought through fixed rate use and structure compounds on things like cross collateral and concentration risk.

3.Fixing most or all of your lending with the same maturity date can leave you out to dry, totally. For eg should you fix say 1 mill of your lending today for say 3 at 5.4 ish, thats good SANF.................until we get to month 30 of 36 and the RBA sees a runaway economy and wants to put the brakes on and retail discounted rates are now at 8 %, you are heading toward a 500 a week increase in your interest bill. Ways to mitigate that risk somewhat is to keep some variable, but also to stagger the maturity of your fixed rates.

Some stuff to think about, and there are others.

Paranoid,..............nah, just realistic enough to realise that clients deserve a bit more data so they can make informed decisions around managing risk.

ta
rolf

 

[zapoix.]

Having a read of your post
Points 1 2 3 and even 4
The paranoid one
All good thoughts
Read your post from 2004 and think it will be the sort of info that will stand the test of time as it is still relevant today
I am submitting my paperwork to the bank tue and hope it all goes well
May think of fixing my rate on one of my loans but I will way up my options when I hear what they have to say

Thanks Rolf for your time

 

[Aaron_C]

Yeh rate is everything so go for the lowest everytime

 

[tobe]

Are there many banks going under /5.06 interest rate
Was with rams @ 6.1 now going to refinance with CBA
@ 5.06 on a 1.2 mil loan over 3 property's
Just wondering if I can find a better rate or is this about my best shot

Smells like Rams low doc, or an old full doc product. Get a payout figure from Rams and ask them if they will match your offered rate. If it is a low doc loan, and you cant now provide financials, you might not be getting a new loan at all.....