3 and 5 year fixed rate thread

[apk]

As they said here http://somersoft.com/forums/showpost.php?p=994095&postcount=5

CBA Fixed Rate Drop!

1Year Fixed Rate 5.34% --> 5.19% (comparison rate 6.19%)

3Year Fixed Rate 5.29% --> 5.29% (comparison rate 6.09%)

Source: http://www.commbank.com.au/personal/home-loans.html

 

[tobe]

ME 3yrs, 4.99%. My call we wouldnt see 3yr rates lower than last cycle is looking shaky.....

 

[Rolf Latham]

ME 3yrs, 4.99%. My call we wouldnt see 3yr rates lower than last cycle is looking shaky.....

I expect balance of lenders will follow suit soonish.

Funds managers are looking to secure "cash" based incomes and are maybe dumping a lot of money on the short to mid term market................. and its not finding much retail take up.

ta
rolf

 

[INVSTOR]

ME 3yrs, 4.99%. My call we wouldnt see 3yr rates lower than last cycle is looking shaky.....

Cool, my bank manager is away on holidays for another week, I was hoping they'd drop before then.

 

[virgo]

ME Bank vs Homeside

Hiya

Both now offer 4.99% fixed for 3 years with no monthly transaction fees...

So i guess it all comes down to:

a) service
b) ease of top up/splits
c) exit fee
d) revert interest rate once 3 years is up

Anyone care to comment?

 

[Rolf Latham]

Hiya

Both now offer 4.99% fixed for 3 years with no monthly transaction fees...

So i guess it all comes down to:

a) service
b) ease of top up/splits
c) exit fee
d) revert interest rate once 3 years is up

Anyone care to comment?

My experience with HSL has been very good in the last 9 mths, sad previous to that.

We have a file runner in there that can get stuff done that was previously not possible for us, but I guess it helps when you as a broker are an integral part and a decent chunk to someone else's bonus KPI.

Exit fee............forget that as a comparison tool since that can change overnight.

In fact the only reliable partway consistent above is probably B, but even that can change.

How does a new lender in your portfolio affect you structurally, Ie, are you looking to buy more stuff, do you need DUA for LMI, do you need a lender thats quite ok with high volume investors etc

ME is great for ma n pa staff, since if u think about it, thats thir real target market.

BTW, see my earlier posts about my perception on fixed rates.............I dont think you need to rush, but I have been wrong b4

ta
rolf

 

[ferdinandch]

Hiya

Both now offer 4.99% fixed for 3 years with no monthly transaction fees...

So i guess it all comes down to:

a) service
b) ease of top up/splits
c) exit fee
d) revert interest rate once 3 years is up

Anyone care to comment?

Do you have to negotiate for 3 years 4.99% with Homeside? All I can see is 5.29% at this moment. 4.99% is for 2 years fixed.

 

[virgo]

ME Bank vs Homeside

How does a new lender in your portfolio affect you structurally, Ie, are you looking to buy more stuff, do you need DUA for LMI, do you need a lender thats quite ok with high volume investors etc

ta
rolf

Pray tell what is "DUA?"

and to the previous poster, you are right about Homeside, 2 years fixed at 4.99% not 3 years...

I am now leaning towards ME Bank especially this :
http://www.mebank.com.au/promotions...|19673540208&gclid=CIni15K6yLUCFcUt6wodTBkAfA

Gotta find out whether i qualify as a Member Package

 

[tobe]

Delegated Underwriting Authority. Not every deal goes before the the mortgage insurer as well as the assessor.

 

[virgo]

Dua

Ahhh....sounds like Very Important (or Frightening) People.....i assume you only go to them if you are above 80% LVR and you need to pay LMI ?

 

[Aaron_C]

Do you have to negotiate for 3 years 4.99% with Homeside? All I can see is 5.29% at this moment. 4.99% is for 2 years fixed.

Hard to negotiate fixed rates since they are based on money market factors rather than SVR.

 

[tobe]

Ahhh....sounds like Very Important (or Frightening) People.....i assume you only go to them if you are above 80% LVR and you need to pay LMI ?

not necessarily. Some lenders have DUA over certain things, where the mortgage insurer takes the lenders policy instead of their own.

80% LVR is just the point where most lenders pass on the cost of LMI to the borrower. loans under 80% may or may not be mortgage insured, and may or may not be assessed individually by the mortgage insurer.
DUA may or may not mean stricter criteria. If the DUA has only just been given, the credit assessors might be over zealous in enforcircing the policy, cause they dont want to 'lose' their DUA if they are too lax.
Its just another factor in choosing the right lender.

 

[INXS]

Is it worth asking CBA to match ME Banks 4.99% for 3 years......or am I wasting my time.

 

[knightm]

Finally celebration

I just spent 4 months refinancing approx 450k across from variable cba to fixed 3 yrs with St G. Their customer service appears terrible - this was my 3rd lending project with current broker and I dont think they were the problem.

But with more generous serviceability formula (for me anyway) that meant CBA wouldn't fix me (not with cash out) and a great rate I am happy to say I am locked in at 5.29%.

Given my young family and a few new ventures on the table this year it just seemed like good risk management to me.

I watched this thread with interest but didn't want to jinx my loan by talking about it before it was finalised.

Celebrate the little victories.

 

[Aaron_C]

I just spent 4 months refinancing approx 450k across from variable cba to fixed 3 yrs with St G. Their customer service appears terrible - this was my 3rd lending project with current broker and I dont think they were the problem.

I will speak for your broker here and definitely say that the broker is NOT the issue St George have been having all sorts of problems since WBC bought them.

But at least you have gotten it done and dusted - phew!

 

[luckyone]

I rang St George today to see if they would match the 4.99% for 3 years set by ME. They said they only match with the other 4 big banks, so they offered me 4.99% for 2 years. Think I'll just wait a bit longer though and see what happens.

 

[warek]

Has anyone had success with big 4 banks matching or close to ME 4.99 for 3 yea

Hi there

Would appreciate information if anyone has been able to negoitate a better rate than 5.29% fixed for 3 years with the big 4 banks. I am considering fixing a 450000 variable loan with Homeside. Attracted by ME 4.99 but not enough to not change banks.

Thanks

Kevin

 

[C-mac]

My broker also tried to get be on board with Homeside. They have good product features like offset accounts and so on. Haven't really heard much from her though on ME Bank; might have to do some digging.

 

[Aaron_C]

My broker also tried to get be on board with Homeside. They have good product features like offset accounts and so on. Haven't really heard much from her though on ME Bank; might have to do some digging.

Does your broker have access to ME Bank? Some aggregators haven't yet. All I'll say about ME Bank is that their product is alright so if you are chasing a good fixed rate for 3 years they are fine.

 

[Mick C]

Me bank has a higher annual fee compared to Homeside.

+ Homeside has some good unique policy features.