3 and 5 year fixed rate thread

[Brady]

Client just brought in a page ripped out of the Advertiser (page18)

Peoples Choice Credit Union

2 Year Fixed Rate 4.84%

Few hidden things, minimum total borrowing $200k, <75% LVR, also only allowed to lock in upto 50% of total borrowing the other borrowings has to be on a variable (which is currently 5.60%)

not sure of establishment fees and on going fees.

 

[ugotadollar4me]

ubank 1 year fixed 4.79%

 

[rowena]

is it just me or has anz raised their 4 and 5 yr fixed loans by 0.05%?

now 5.99 - 0.14(break free) = 5.85%

I thought it was at 5.80 with the break free for a little while.



1, 2 and 3 yr fix is at 5.4% with break free and is unchanged.. as far as i can tell..

 

[INXS]

Just wondering if there has been any movement on 3 yr rates over the last couple of weeks. I'm waiting on 4.99% for 3 years before I fix, but I don't want to miss the bottom of the cycle. What are the opinions whether the next movement is up or down?.

 

[Brady]

Just wondering if there has been any movement on 3 yr rates over the last couple of weeks. I'm waiting on 4.99% for 3 years before I fix, but I don't want to miss the bottom of the cycle. What are the opinions whether the next movement is up or down?.

Also wondering the same thing. Was thinking of fixing... but with RBA lowering today.

Hrmm is 5.19% good enough for 2 years?

 

[feihong]

bond got sold off today

Bond yield went up as a result of RBA cut so it might mean that the fixed rates are going up too.

 

[Mick C]

Citibank, St george etc... has all gone up as of 3 days ago

 

[mystery]

is it just me or has anz raised their 4 and 5 yr fixed loans by 0.05%?

now 5.99 - 0.14(break free) = 5.85%

I thought it was at 5.80 with the break free for a little while.



1, 2 and 3 yr fix is at 5.4% with break free and is unchanged.. as far as i can tell..

Rowena,..... similar ... I thought my eyes were deceiving me. Looked at Westpac 4 & 5 year fixed yesterday @ 5.99%. Today after the RBA .25 cut, I notice Westpac has bumped up 4 & 5 year fixed up to 6.09%.

Mystery ....

 

[Mick C]

Fix rates doesn't follow the RBA movements...if it did- it certainty wouldn't be 4.97%/5.20% fixed for 2 years etc...Fix rates follows the swap rate/contracts and international bond money.

 

[saiman]

no real reason to fix imo...

can anyone see SVR's going up in the near (even longish) future?

 

[Mick C]

well i can't see the SVR going down to 4.99- 5.20% any time soon - might as well cash in the benefit now

but imo fixing should be about budgeting, improving structure/serviceability and spreading risk rather then "beating" the SVR anyway....

 

[saiman]

you're right, but the REAL pain hits you when you're stuck at 7% and everyone else is paying 5% haha

 

[Brady]

you're right, but the REAL pain hits you when you're stuck at 7% and everyone else is paying 5% haha

Shouldn't be pain at the time if you fixed for 7% you had a reason to fix at that rate for that set term...

 

[Rixter]

Shouldn't be pain at the time if you fixed for 7% you had a reason to fix at that rate for that set term...

Exactly! If your personal financial situation has not changed due to some unanticipated reason since you decided to fix then the only thing that has changed is your perception. That being the case, you are focusing on the half empty side of the glass. Be very very careful with this kind of mindset because what you focus on you attract a lot more of - good & bad!

The formula for Success is 80% correct mindset x 20% applied strategy.

In other words how you think is four times more important than how you plan on achieving it.

I hope this provides some food for thought.

 

[tobe]

Im calling it, that was the low point for 3 year fixed rates.

 

[Brady]

Im calling it, that was the low point for 3 year fixed rates.

Now? or you saying its gone and fixed rates are going up?

 

[tobe]

Im far from a finance guru, this is just my gut instinct, and Im happy to be proved wrong, BUT, I reckon we have seen the best 3 yr fixed rate for the time being (the next 2 or 3 years) and 3 yr fixed rates will stay about the sameish and or start to climb from this point on.

I dont think we will see fixed rates at 4.99% like we did in 2009.

There you go, thats my call.

 

[Brady]

Im far from a finance guru, this is just my gut instinct, and Im happy to be proved wrong, BUT, I reckon we have seen the best 3 yr fixed rate for the time being (the next 2 or 3 years) and 3 yr fixed rates will stay about the sameish and or start to climb from this point on.

I dont think we will see fixed rates at 4.99% like we did in 2009.

There you go, thats my call.

Thats what I thought you were saying.

Im not too sure how much if any they will continue to decrease either.

 

[JIT]

Citibank, St george etc... has all gone up as of 3 days ago

Mick C,

Can you tell us what the 3 year rates of these banks were, and what they are now, including WBC?

I haven't been watching so wondering how much they have moved by.

Thanks.

 

[Brady]

CBA cut SVR by 0.20% effective 10/12

SVR will be 6.4%