5 year fixed rates thread
- Thread starter JIT
- Start date
Long end sold off up to 45bps since RBA cut early Feb so that could be what they are going of. In saying that the resi fixed rates havent gone up so who knows what feedback the Treasury and Marketing teams are giving to the Interest Rates committee when deciding these things.
Hi All,
Now with bank bill yields have stabilised, & 3 & 5 year money is more expensive, now what are everyone's thoughts about fixed rates?
Is anyone currently having their loans fixed or are we still waiting?
I'm thinking about making a move, but not sure if it's time
. Now I know no one can predict when the bottom hits but I'm pretty sure some have idea when they will stop.
Cheers
George
Now with bank bill yields have stabilised, & 3 & 5 year money is more expensive, now what are everyone's thoughts about fixed rates?
Is anyone currently having their loans fixed or are we still waiting?
I'm thinking about making a move, but not sure if it's time
. Now I know no one can predict when the bottom hits but I'm pretty sure some have idea when they will stop.Cheers
George
Still waiting...
I'm a simple man and I see it this way. Until they fix Wall St, they won't fix Main St. So don't expect an economic recovery until the financial system sorts itself out. This means I expect to see the BBSW improve before the economy comes back. If that's the case, then I should see the BBSW better whilst the RBA is still holding its cash rate in the expansionary range. When that happens expect your long dated rates to improve and do so before the RBA starts hiking (late) to slow an economy expanding too fast.
There's no rush. The financial system is still stuffed and will take some time to fix. Worry about fixing rates when the financial system is fixed and the economy is showing tentative signs of being on the improve.
I give it at least 12-18 months.
Cheers,
Michael
I'm a simple man and I see it this way. Until they fix Wall St, they won't fix Main St. So don't expect an economic recovery until the financial system sorts itself out. This means I expect to see the BBSW improve before the economy comes back. If that's the case, then I should see the BBSW better whilst the RBA is still holding its cash rate in the expansionary range. When that happens expect your long dated rates to improve and do so before the RBA starts hiking (late) to slow an economy expanding too fast.
There's no rush. The financial system is still stuffed and will take some time to fix. Worry about fixing rates when the financial system is fixed and the economy is showing tentative signs of being on the improve.
I give it at least 12-18 months.
Cheers,
Michael
Hi All,
Is anyone currently having their loans fixed or are we still waiting?
I'm thinking about making a move, but not sure if it's time
Cheers
George
The truth is ... nobody really knows what is going to happen next.
You can gather as many opinion as you wish, but in the end there is still uncertainty.
It should really depend on your personal circumstances rather than on expectations of hitting the bottom.
TokenFunder said it better than everybody else:
"Fix for predictability, (discounted) variable for cheaper over the long term".
I am currently fixing one of my loans, but that doesn't mean you need to do the same.
It's your specific situation that should drive your decision more than anything else.
Cheers,
Comparison rates are almost a scam, they have unrealistic assumptions such as that the variable rate will stay the same, and the term of the loan etc. They also assume you will stay with that same lender for 30 years!!
I look at the fixed rate only, and at the end of the term re-evaluate. You'd be mad to just roll onto the variable and leave it sit like the comparison rates assume when theres always new options out there in 5 years time.
Hey it looks like RAMS are going cheap for over $500k of debt now, 5 year rates 5.71 http://app1.ratecity.com.au/pls/htm...,P6_CLICKPROD_NOLOG:MORT0000047940,,Clickprod
Still not low enough for me
I look at the fixed rate only, and at the end of the term re-evaluate. You'd be mad to just roll onto the variable and leave it sit like the comparison rates assume when theres always new options out there in 5 years time.
Hey it looks like RAMS are going cheap for over $500k of debt now, 5 year rates 5.71 http://app1.ratecity.com.au/pls/htm...,P6_CLICKPROD_NOLOG:MORT0000047940,,Clickprod
Still not low enough for me
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Yep, that seems right.Westpac have just dropped their 5 year fixed rate to 6.29% on the premier Advantage package; effective 17th Feb. How about that!
George
Showing as 6.49% here, but the pro packers get 20bp off that amount.
Still the odd 6.19% 5 year fixed out there which has been the best on offer for a while now. All the arrows on this table are pointing in the right direction. I just watch it to see that they're all still falling and wait until the economic crap really hits the fan. Then rates will get interesting.
Cheers,
Michael
Westpac have just dropped their 5 year fixed rate to 6.29% on the premier Advantage package; effective 17th Feb. How about that!
Bring it on, hope to see the 5 in front of it on the next cut.
George
Gotta be quicker than that mate
http://www.somersoft.com/forums/showpost.php?p=510711&postcount=315
Posted back on the 9th
Dave
Gotta be quicker than that mate
http://www.somersoft.com/forums/showpost.php?p=510711&postcount=315
Posted back on the 9th
Dave
Wow, I'm a bit slow BoatBoy, but gee your quick.
http://www.news.com.au/dailytelegraph/story/0,22049,25081684-5001028,00.html
RBA gov talking here. No comment on future but agreed he will lower if needed.
Seems the bets are for another 1% till bottom.
Peter
RBA gov talking here. No comment on future but agreed he will lower if needed.
Seems the bets are for another 1% till bottom.
Peter
looks like all those who jumped on the 3 year westpac deal 4.99% got dudded.
Me too... we could be waiting awhile!
Maybe not. I was quoted 6.19% for 10 yrs at RAMS...
Not if your variables rates are going to at around 4% for some time...
You got to roll the dice at one point or another. I would be suprised if we are at 4% in 2011. If we are it is, we would have gone to 3% in between.
Peter
Peter
Here's todays futures yield curve.
The futures imply that the RBA rate in Jun 2010 (14 months away) will be ~50bps below the current rate, and for most of the intervening time it'll be more than 100bps below the current rate.
The big4 variable rate is currently ~5%, so assuming they pass on most of any RBA cuts, it'll mean that variable rates after Jun 10 will have to be significantly above the current rate for those who are fixing at todays offered rates to come out ahead.
And as a comparison, the yield curve from 6 weeks ago... (note the change in the Y axis).
