wbc 3 year now 5.54 under Pro pack ( CR much higher obviously)
ta
rolf
ta
rolf
3 and 5 year fixed rate thread
- Thread starter lizzie
- Start date
Noticing some interest from people asking questions about the fixed rates, with variables likely heading down in the short term it's a challenging decision to make.
in many cases its a simple one : )
where it does get challenging if we arent clear for the reasons and the downsides.
Could we see effective variable rates below 5 % in the next 12 mths ?
Interesting question to ponder, and most of the bankers dont think so due to cost pressures from offshore, but I guess the more we fund out of Oz the less that will be an issue ? Im not an economics guy otherwise I would be on my big boat in the Witsundays and the Bahamas, flying between them in my Gulfstream 4
ta
rolf
Hi Rolf,
Is the 3 year fixed for P&I and IO loans? starting to get very tempted- might see happens with the RBA early next month before making a decision
Hayden
same rates for PI and io
ta
rolf
ta
rolf
Even the comm market is now pricing standard comm security at sub 6s for 3 year fixed with BWA being one example
ta
rolf
ta
rolf
Can someone please direct me to where I can see a graph or figures showing the history of 3 year and 5 year fixed loan rates over time. Basically something that shows these rates over the last 10 or 20 years. I'd particularly like to see how low they've gone historically and maybe get an indication of how far we are off in comparison. Thanks in anticipation.
Here is a graph i did last month on rba tracked data.
Thanks for that. It appears that 3 year rates are at about the lowest point that they have ever been in the last 30 years. Westpac dropped their rates today to apparently the lowest of the big four and quite competitive with some of the minors. I don't expect to be able to pick the bottom of the market. I'm fixing.
I don't expect to be able to pick the bottom of the market. I'm fixing.
The bottom can only be picked retrospectively....anything other is merely a guess.
I guess its better than that, the money markets are pricing these things, the lenders are just buying them and pretty much retaining their margins (I think !)
ta
rolf
Comparison rate for fixed loans means nothing....or does it??
Hi Aaron,
Can you explain why you suggest this? The comp rate does take into account other charges,fees and finance costs associated with the financing method.
Whilst I agree that the fixed period of the loan is generally lesser than the overall comp rate term, these fees are still important and, ceteris paribus (all else being equal) do differentiate total cost of financing....don't they?
I get more concerned with the small print fees, charges, refinancing costs etc that sit behind a low advertised rate.
Hi Aaron,
Can you explain why you suggest this? The comp rate does take into account other charges,fees and finance costs associated with the financing method.
Whilst I agree that the fixed period of the loan is generally lesser than the overall comp rate term, these fees are still important and, ceteris paribus (all else being equal) do differentiate total cost of financing....don't they?
I get more concerned with the small print fees, charges, refinancing costs etc that sit behind a low advertised rate.
thats fine
So look at the actual fees and charges
Comp rate generally can be misleading because it looks to compare carrots and oranges because they are the same colour
ta
rolf
It means nothing because:
a) Comparison rates are based on small loan amounts ($150,000) that have a greater impact on the effect of fees/charges etc.
b) The comparison rate does not give you any solid information about the cost of the loan because the entire point of a fixed rate is that you and the bank are bound to stick to that particular rate for X years, without breaking it. How can you ever assume that the rate will be broken without knowing or predicting the future? It is worthless.
For me the comparison rates only looks at figures. They don't look at what type of servicing a bank might require etc etc.
They are an ok basis on which to start the real comparison.
For my latest venture the comparison rate was void as I wanted a bank who would lend to a Trust for 4 villas on a single title at residential rates. I also wanted to set it up so I had 40% fixed IO and 60% variable IO with offset. At the end of the day there was one bank
They are an ok basis on which to start the real comparison.
For my latest venture the comparison rate was void as I wanted a bank who would lend to a Trust for 4 villas on a single title at residential rates. I also wanted to set it up so I had 40% fixed IO and 60% variable IO with offset. At the end of the day there was one bank
St george
St george have gone down on their 3yr rate again to 5.39%. Interested to know other peoples opinions how lower can they go?
Dustin McMahon
[email protected]
0430 110 304
St george have gone down on their 3yr rate again to 5.39%. Interested to know other peoples opinions how lower can they go?
Dustin McMahon
[email protected]
0430 110 304
