CBA have phoned me and advised that if I complete the forms now to refix for 3 years they will honour the current 3 year fixed rate. Evidently anyone can do this within to 42 days of there fixed rate finishing. And there is no fee involved.
3 and 5 year fixed rate thread
- Thread starter lizzie
- Start date
CBA have phoned me and advised that if I complete the forms now to refix for 3 years they will honour the current 3 year fixed rate. Evidently anyone can do this within to 42 days of there fixed rate finishing. And there is no fee involved.
CBA have phoned me and advised that if I complete the forms now to refix for 3 years they will honour the current 3 year fixed rate. Evidently anyone can do this within to 42 days of there fixed rate finishing. And there is no fee involved.
great result
just financing my two recent purchases.
Using my investment bank brokers for the first time as they have very good rates.
1 year fixed rate 4.35%
However the downside:
30% minimum equity (ie max LVR of 70%)
Have to pay legal costs of several thousand dollars.
Only open to "sophisticated borrowers" and must have investable assets of $1million (outside of property) with the bank.
Using my investment bank brokers for the first time as they have very good rates.
1 year fixed rate 4.35%
However the downside:
30% minimum equity (ie max LVR of 70%)
Have to pay legal costs of several thousand dollars.
Only open to "sophisticated borrowers" and must have investable assets of $1million (outside of property) with the bank.
Is there is a minimum loan amount?
Several thousand for legal fees... If the fees are $4k that means needs to be a $1M just to break even with standard banks...
Also loose 10% usable equity.
Downside looks pretty big, must be some more upside... Lending niches?
supposed to be $1million minimum borrowing, but they have given it to me at around $700k. Most of their clients will be using it for brighton/toorack type properties, not my level.
Yes fees will be about $4k all up, but its a one off, so should really amortise it rather than compare the upfront cost as a %.
The other benefit is that I can switch currencies (not planning on doing this yet though with AU$ so high).
So can borrow in US$ with US interest rates, yen etc etc.
Again no interest at this point in the currency cycle, but it will have its day one day.
There are no monthly repayments, you get whacked with the interest cost when roll over at the end of the year.
only for straight forward residential lending, they wont do it for commercial (tried already, it effects their cost of funding)
HSBC 2 year fixed rate at 4.59%
sorry actual rate is 4.25%, just got the quotes today, not that 0.1% make any real difference.
The other interesting thing is that they charge according to the CURRENT yld curve.
1 week is 4.20, the lowest is the 4 month with 4.16%.
So its pretty flat out to one year, then it jumps:
2yr: 4.41
3yr: 4.66
4yr: 4.95
5yr: 5.17
Comparison overseas currency rates:
Euro: 1yr fixed 1.84%
US$ 1yr fixed 1.74%
But with currency risks.
On the 1yr AUD rate, the net result is a positive cash flow of 6.6% on capital invested (before depreciation benefits) and includes capital provided for stamp duty and legal costs.
CBA have announced that they will pass the full rate which will now take their variable rate to 5.9.
Has anyone heard if they will be applying this full rate to the current fixed home loan rates?
Has anyone heard if they will be applying this full rate to the current fixed home loan rates?
fixed rates have a different pricing mechanism altoether, more set by the money markets future expectations than current RBA moves
ta
rolf
Rolf is spot on...
But fixed rate also happened to drop.
CBA 3 year fixed rate down to 4.89
I think this is more to do with competition
Just noticed this from CBA:
We will beat any advertised Fixed Rate Home Loan
From Friday 9 August until Monday 30 September 2013, CommBank will provide a Fixed Rate Guarantee Offer to beat any advertised 1 – 5 Year Fixed Rate for a Home Loan/Investment Home Loan from ANZ, NAB/Homeside, Westpac, St George, Bank of Melbourne or Bank SA by 0.01% on our equivalent Fixed Rate product.
Regards,
Jason
We will beat any advertised Fixed Rate Home Loan
From Friday 9 August until Monday 30 September 2013, CommBank will provide a Fixed Rate Guarantee Offer to beat any advertised 1 – 5 Year Fixed Rate for a Home Loan/Investment Home Loan from ANZ, NAB/Homeside, Westpac, St George, Bank of Melbourne or Bank SA by 0.01% on our equivalent Fixed Rate product.
Regards,
Jason
This offer does not apply to Bankwest or subsidiary brands not listed above i.e. UBank and RAMS.
I highly doubt it. But that's one really good rate! Even if you have to pay another $850 in fees.
CBA feels confident of this offering. I've compared CBA with all these banks above, and Yes CBA appears to be the lowest of them all for the fixed rates categories.. I just need one of these banks to go lower than CBA for the 3 or 5 yrs fixed...
