Well to be fair they were the first ones to reduce them...
3 and 5 year fixed rate thread
- Thread starter lizzie
- Start date
Well to be fair they were the first ones to reduce them...
its a commercial and free world........
An according to Mr Swan, vote with your feet...........though many times its not that simple
ta
rolf
What drugs you on cause I want some!!!!!!!!!!!
obviously not on the same drugs as you, living in la la land.
rba.gov.au load it up this coming tuesday and continue to do so for the next 6 months current cash rate 2.75 FOR now.
Are you aware that fixed rates aren't heavily reliant on the cash rate like the variable rates
They did reduce them recently but they might respond to the recent movements by other lenders in the last couple of weeks. Currently 5 year fixed is citibank at 5.35 (comp 5.66 and free rate lock) and ING at 5.39 (comp 5.47) are the better options.
I'm kinda tempted but I think rates will go down more
Bankwest 3 Years Fixed 4.94%
Only available for LVR<90%
http://www.bankwest.com.au/personal/home-loans/home-loan-products/fixed-rate-home-loan#wa
Bankwest 3 Years Fixed 4.94%
Only available for LVR<90%
http://www.bankwest.com.au/personal/home-loans/home-loan-products/fixed-rate-home-loan#wa
It will continue to go on as it interest people.
Through managing cash people are able to manage their risk.
If I know that my repayments are $X for Yyears I can manage that risk to ensure that I can survive Zmonths/years with no rent.
Locking in a fixed rate shouldn't be about the rate, it should be about the repayment and what that repayment means to you. Taking into account all the extra risk witha fixed loan.
Exactly my point...Risk management is the higher purpose for fixing in the first instance.
What I find amazing is the amount of people who complain when rates drops after they've already fixed - they focus on what they dont have.
Most times their particular situation has not changed but rather only their perspective has changed.
Success is 80% correct mindset x 20% applied strategy. In other words how you think is four times more important than how you plan to do it.
Yes but every risk has a price.
For some, variable rate risk is something they can't afford to take as it could send them broke in short order. No choice but to lock it in.
For others, fixing interest rates introduces too much inflexibility in their lending so they prefer to keep it variable and they're able to deal with rate increases if and when they occur.
And then there are a large number of people in the middle for whom the decision to fix depends on the price. The hedge has a value to them and the inflexibility has a value to them too - it all depends on the rate.
Given that something like 80% (of that order - I can't remember the precise figure) of all Australian home loans are variable right now, it's clear that the benefits of fixing aren't compelling for the majority.
For myself, it does depend on the price. I've already fixed a small amount when it got to 5.29% for three years. If it gets below 5% for that duration I'll lock in some more, although I would like to also see what happens with the 5 year rate. Purely because of the price - the lower they go the less you have to lose and the more you have to gain by fixing. But you still have to live with the inflexibility it gives you.
Everything has a price... so I'm certainly interested in the updates provided by this thread - saves me looking myself for the movements all the time.
For some, variable rate risk is something they can't afford to take as it could send them broke in short order. No choice but to lock it in.
For others, fixing interest rates introduces too much inflexibility in their lending so they prefer to keep it variable and they're able to deal with rate increases if and when they occur.
And then there are a large number of people in the middle for whom the decision to fix depends on the price. The hedge has a value to them and the inflexibility has a value to them too - it all depends on the rate.
Given that something like 80% (of that order - I can't remember the precise figure) of all Australian home loans are variable right now, it's clear that the benefits of fixing aren't compelling for the majority.
For myself, it does depend on the price. I've already fixed a small amount when it got to 5.29% for three years. If it gets below 5% for that duration I'll lock in some more, although I would like to also see what happens with the 5 year rate. Purely because of the price - the lower they go the less you have to lose and the more you have to gain by fixing. But you still have to live with the inflexibility it gives you.
Everything has a price... so I'm certainly interested in the updates provided by this thread - saves me looking myself for the movements all the time.
I am also waiting their move. Their fixed rates have been steady for about a month now and whilst still competitive, given this is one of NAB's low-cost brands, I am surprised that there is no interest rate differential betwen Hmeside and NAB. And these fixed rates are also the same rates as CBA's.
I don't know the story behind their cost of funds, but I would be expecting to see some reduction soon, given their current relative position in the market with respect to interest rates.
3 months ago 4.99% for 2 years would have been fine, but if I can squeeze a bit extra, I will wait for another few weeks.
I'm in the same boat, waiting until RBA increase their rates. Then I will apply 5 years rate lock.
However I've consider from time to time:
Let say loan 1M, now I will lock 250k. When rate down another 25bp, will lock 500k. Simply to keep flexibility in variable rate..
Let me know ur opinion..
Ta,
i do admire you rixter and to you yes fixed rates is about risk management but if you dont need to fix to manage your risk (say you have a big buffer) then why not wait it out and see if you can get a better rate
aslo would it not be better to try and time the market so you fix when its going to come out, you dont want to fix now for 3 years @5% and when you come out of ur fixed rate its at 10%
where if you waited another year and fixed @ 5% but when you come out the rate has dropped back down to 7%
Once its clear that rates have bottomed (rba increasing rates or us rates increasing?) fixed rates would have already jumped up significantly from their lows. You won't be able to wait for this obvious signal and expect to still lock in near this cycles low point.
Like when we had westpac briefly at 4.99% in 2009 then within a week 3 year fixed were in the mid 6's.
Like when we had westpac briefly at 4.99% in 2009 then within a week 3 year fixed were in the mid 6's.
Same thing happened to me in 03, the 5 year fixed was about 0.25% lower than the variable, I was waiting to fix. Then overnight they went up about 1% and I missed the boat.
Lesson learned for me I just fixed 75% at the lowest 5 year rate I could get.
I dont know about you but I cant make decisions today based on future predictions that may or may not happen some years ahead down the track..I can only make my decisions based on information I have available today with the option of contingency plans to minimise risk should things not pan as time goes by.
In retrospect its easy to say what was a good past decision and what was not.
I hear a lot of people say this, however they've kept dropping whilst being below variable rates.
Fixed rates are determined by the agreements lenders can form to secure fixed credit. With the global instability and equities being pretty bouncy to say the least, it doesn't surprise me to see such attractive fixed rate options. Fund managers need a safe place to park their increasing pool of defensive funds.
