3 and 5 year fixed rate thread
- Thread starter lizzie
- Start date
Wouldnt have the mind set about it being the bottom.
If your going to fix @ 5.39% be happy that your fixing in at 5.39% even if rates drop lower... 5.39% is a good rate
Doesn't matter if it's the bottom yet or not. 5.39% is very decent compared to the variable...your saving on interest from day 1!!!
+ if 5.39% fits into your budget and lifestyle, that's a great 3 years insurance policy you have just bought- good work
Regards
Michael
Doesn't matter if it's the bottom yet or not. 5.39% is very decent compared to the variable...your saving on interest from day 1!!!
+ if 5.39% fits into your budget and lifestyle, that's a great 3 years insurance policy you have just bought- good work
Regards
Michael
That's what I figured. The RBA would need to cut twice more (assuming the banks only pass on 15-20 points each time) in order for average discounted SVRs to drop below 5.39%
Thought....the lower the variable rates go the more the banks get squeezed on their net interest margin (NIM). All those funds sitting in everyones everyday accounts that they don't pay interest on must add a decent whack to their NIM...the lower rates are in general the less benefit they get from these slush funds floating around.
So following this through the rba is going to have to cut harder to get the actual bank rates down. What's the ceiling rate where the banks would just not pass on any cuts? 4% / 4.5%. / 5%? We are not too far off.
So following this through the rba is going to have to cut harder to get the actual bank rates down. What's the ceiling rate where the banks would just not pass on any cuts? 4% / 4.5%. / 5%? We are not too far off.
CBA is now promoting a fixed rate price beat by .01% from the other Big 4
At 5.39% will CBA be the market leader amongst the Big 4? If so, the 0.1% price beat is only useful once the other 3 respond with an even lower reduction???
.01? pretty crappy discount
I think its more of a price signal to the others ie stop lowering your rates fellas
HE,
St George went down to 5.79% for 5 years at the end of Feb 2009, that was about as low as it got back then, then this increased only 2 months later to just over 6% for 5 years I believe.
I think anything for 3-5 years in the low to mid 5's is good value, taking the 2008/9 WBC 4.99% 3 year rate as your lower reference point.
Not sure if it will go even lower this time?
And if so, how long it will stay this low?
from BDM
We have dropped our fixed rates effective 15/10/2012
1 year rate to 5.39%
2 year rate to 5.29%
3 year rate to 5.39%
4 year rate to 5.69%
5 year rate to 5.79%
Thanks Rolf, appreciated!
