3 and 5 year fixed rate thread

[Peter_Tersteeg]

do brokers always get a heads up when an institution is going to increase rates...if so a heads up on ANZ would be good.

ANZ used to do that, but they stopped the formal practice a few years ago. Sometimes we do get a heads up but it can't be relyed on.

Edit: I just received an email from ANZ. They haven't announced anything, but are actively encouraging customers to rate lock. Clearly a there are people within the organisation expecting their rate to increase.

 

[Spectre]

just had an email in from a bdm their swap rates are up so they're saying fix if you need to

 

[Spectre]

then a second after i type this ing reduces their fixeds email comes in.
crazy

 

[Rickardo]

then a second after i type this ing reduces their fixeds email comes in.
crazy

What have they been reduced to?

 

[jonmardell]

What have they been reduced to?

2 year 4.99%

 

[achilles]

If I were to rate lock, is that only against one loan? Or can I rate lock and then decide that I want to apply that rate against multiple properties?

 

[Aaron_C]

Sounds like smoke and mirrors to me.

 

[jonmardell]

If I were to rate lock, is that only against one loan? Or can I rate lock and then decide that I want to apply that rate against multiple properties?

you have to rate lock per loan. some banks allow the rate lock rate or lower at settlement and others you just get the rate lock rate.

 

[dajackal]

Would any recommend the CBA 2 year fixed loan for 4.99%?
Are they going to be removing it anytime soon?

I've already got a wealth package with CBA

 

[jonmardell]

Would any recommend the CBA 2 year fixed loan for 4.99%?
Are they going to be removing it anytime soon?

I've already got a wealth package with CBA

we cant recommend any product without knowing your full financial circumstances but the CBA rate is as good as it gets. We have been receiving emails all week from lenders regarding rate lock so it could be a sign.

 

[Brady]

Just fixed in a portion for 2 years

 

[Ausprop]

Was encouraged to pay a few hundred dollars for a rate lock to ensure 4.99%, do brokers always get a heads up when an institution is going to increase rates...if so a heads up on ANZ would be good.

I just got quoted $1080 for rate lock... bit of a rip.

 

[jonmardell]

I just got quoted $1080 for rate lock... bit of a rip.

most banks charge .15%, so your loan amount is 720K? CBA charges a flat rate of $750 and a couple of banks do free rate lock at the time you submit the application

 

[Ausprop]

most banks charge .15%, so your loan amount is 720K? CBA charges a flat rate of $750 and a couple of banks do free rate lock at the time you submit the application

makes sense, yes the amount i was looking to split off is $720k- to split is a 10 day application tho, whereas a full lock is next business day and there would be no need to rate lock. I think I will fix the full amount today... fingers crossed from here on.

wow... 4.99. cheap as chips!

 

[Spectre]

if the loans existing and just a straight switch (at cba) you dont pay the rate lock.
If you're going from lender a to lender b then you may or may not decide to pay it.

I can remember rate locking people in at 9% in GFC because they were convinced it was going to double digits. We're still a bit away from there.

It all depends on your strategy - I would figure most would have a 9-10% rate built into their cashflows anyway to cover when rates go up.

Noting as well, heaps of smaller lenders who dont rate lock. So once you build the fee and interest into total holding cost for the year a higher rate might actually be cheaper than the lower rate with the rate lock.

 

[jonmardell]

makes sense, yes the amount i was looking to split off is $720k- to split is a 10 day application tho, whereas a full lock is next business day and there would be no need to rate lock. I think I will fix the full amount today... fingers crossed from here on.

wow... 4.99. cheap as chips!

which bank are you with? alot of lenders out there are a pain to make switches and adjustments to the loans basically full applications. St George and CBA are the best in my opinion.

 

[Ausprop]

which bank are you with? alot of lenders out there are a pain to make switches and adjustments to the loans basically full applications. St George and CBA are the best in my opinion.

it was only a rate lock because I wanted to split the loan and that took time, to just go str8 to the special for the full loan amount was no cost. this is a nab loan and it seems there is no application process or anything, just a flick of the switch. thio I have just discovered it breaches my IO period so now my only choice is to elect to start P&I a year earlier.

 

[Risky Business]

CUA now has a cheap rate at 5.1% for 1,2, or 3 years fixed.

 

[SamA]

Do CBA and SGB typically provide forward notice of an impending rise to their fixed rates and if so how many days notice is typical? Just spoke to CBA and they indicated no forward notice is provided.

 

[jonmardell]

Do CBA and SGB typically provide forward notice of an impending rise to their fixed rates and if so how many days notice is typical? Just spoke to CBA and they indicated no forward notice is provided.

they do sometimes but not all the time. There has been a lot of emails recently suggesting rate lock be taken which would suggests they are looking at it closely