i still call a 0.25% cut to pre-empt bad news in the budget.
5 year fixed rates thread
- Thread starter JIT
- Start date
Hi Peter
NAB's 5.99% on 4&5 years with a propack. That do?
http://www.nab.com.au/wps/wcm/connect/nab/nab/home/Personal_Finance/6/1?urid=1216622918852
Hi All,
Does anyone know who's got the lowest 5 year fixed rate at the momoment?
From what I've searched I see NAB at 5.99%.
Cheers
George
Looks like it:
http://www.interest.com.au/Borrowing/Mortgages/index.htm
You're assuming far too much.
Banks offer fixed interest rates as long as they can make a decent profit on it. Recently long-term interest rates (ie, 10 year & 5 year bonds) have gone up. As their cost of funding goes up, banks raise their interest rates.
That's it really.
Cheers,
MECU 5.79% is a 3 years fixed not 5 years.
You could be right as I haven't called them, but not according to this site which has them as 5.79% for 5 years.
Cheers,
Michael
Did you notice whether the 3 year fixed moved? Just that I thought it was at 5.59% a couple of weeks back when I first got into discussions with Nab but now it is 5.54%. Not a lot I know but if this was the case it has dropped a smidge. I am still waiting for the callback to do the application for the fixed which I suspected might be delay tactics until the rate goes up!
According to Wed. AFR the cost of funding to the banks has dropped significantly since three months back.
And RBA and Treasuer says unemployment will rise this year to middle next year 2010.
So AFY asked.......can the RBA justify a raise in rates when employment is dropping? and inflation is under control (under 3% limit)? It would not seem so, thus no rise until middle 2010.
Peter
And RBA and Treasuer says unemployment will rise this year to middle next year 2010.
So AFY asked.......can the RBA justify a raise in rates when employment is dropping? and inflation is under control (under 3% limit)? It would not seem so, thus no rise until middle 2010.
Peter
FYI the AFR (fin review) was alternating between two views:
Recession has passed and we are on an upturn in late 2009.
False Dawn, no recovery until mid 2010.
In either case rate wise it was:
To me, it seems 2010 is great time to buy up, lock for 5 or 7 years and let inflation and supply and demand do it's thing!
Peter
Recession has passed and we are on an upturn in late 2009.
False Dawn, no recovery until mid 2010.
In either case rate wise it was:
- no more drops
- another 0.5% drop
To me, it seems 2010 is great time to buy up, lock for 5 or 7 years and let inflation and supply and demand do it's thing!
Peter
Peter,
I agree completely as I've spelled out a couple of times. The current environment is not conducive to rate rises, period. They're at least two years off. Bank funding costs are falling and the recession is only just starting to unfold with the resultant job losses.
Having said that, I definitely believe in high inflation in the medium term, so a 2010 fix sounds about right to me.
Good post, a little kudo coming your way (I'm in a generous state of mind today!)
Cheers,
Michael
I agree completely as I've spelled out a couple of times. The current environment is not conducive to rate rises, period. They're at least two years off. Bank funding costs are falling and the recession is only just starting to unfold with the resultant job losses.
Having said that, I definitely believe in high inflation in the medium term, so a 2010 fix sounds about right to me.
Good post, a little kudo coming your way (I'm in a generous state of mind today!)
Cheers,
Michael
Well the valuation was OK, but it didn't go through on their serviceability criteria...so I'm keeping this Westpac loan on variable now. Another with Bankwest on variable too. And two CBA loans on fixed rates till Sept/Nov this year which I will probably also keep on variable, unless fixed rates are still attractive at that point...oh well!
I'm the same, but our servicability was ok, but valuation came in and it's at 82%.. finally that is, after a 1 month wait for approval.
They want mortgage insurance but no way I'm paying that. Does anyone know if St George can be flexible to "let it through" at 82%? My broker is going to try, but we have to wait for a week or so as St G is slow.
Sorry but Bank funding costs are not falling. Longer term rates have been rising for nearly 7 to 8 weeks.
I understand our banks are under pressure to reduce their lending to deposits ratio, otherwise they lose their AA credit rating. Apparently, ours have been lending at a higher rate than domestic deposits have been recently growing.
I also have read ours are reliant on foreign funds for anything from 25- 40% of all funding, well up on its long term dependence. If so, our banks will be competing with US and Euro banks for the same foreign pie....and the foreign banks need the funds more than ours do cos their balance sheets are cr@pier.
Apart from that, investors are looking for higher returns now as everyone gets excited about Bernanke's green shoots, which is putting upwards pressure on cost of wholesale funding.
So, Australia and many other countries have this balancing act to play....on the one hand they have to keep providing credit to stimulate consumption while also satisfying money markets looking for higher returns. On the other hand, they have to consider the domestic economy - recession, RBA lowering rates, growing unemployment, less consumption.
This has become a harder balancing act since Australia has become more reliant on foreign funding. And the big reason for that is our savings haven't gone up commensurate with what we need to borrow to buy a house.
I also have read ours are reliant on foreign funds for anything from 25- 40% of all funding, well up on its long term dependence. If so, our banks will be competing with US and Euro banks for the same foreign pie....and the foreign banks need the funds more than ours do cos their balance sheets are cr@pier.
Apart from that, investors are looking for higher returns now as everyone gets excited about Bernanke's green shoots, which is putting upwards pressure on cost of wholesale funding.
So, Australia and many other countries have this balancing act to play....on the one hand they have to keep providing credit to stimulate consumption while also satisfying money markets looking for higher returns. On the other hand, they have to consider the domestic economy - recession, RBA lowering rates, growing unemployment, less consumption.
This has become a harder balancing act since Australia has become more reliant on foreign funding. And the big reason for that is our savings haven't gone up commensurate with what we need to borrow to buy a house.
