Any Recent Fixing Regrets?
- Thread starter CHAOS
- Start date
I have a couple of mill fixed at 4.94%. I'm not worried at all, as this wouldn't be much different to my variable if I'd left it that way, and instead I scored almost 2 years of lower rates.
I come off fixed rates next year, and will decide on fixed/variable again then.
I come off fixed rates next year, and will decide on fixed/variable again then.
What? Surely there's more to this story.
no they are a bit odd, had been asking them to fix it for 1 year since Feb 2014but they kept saying they wanted to do it as part of another purchase I was doing, then I just got a random email from my bankers assistant on xmas eve saying 'just to let you know I fixed it for 2 years' on a stand alone basis... weird hey? they do all sorts of things that I find odd - once they settled on a property for me before I had a chance to return the mortgage docs
Before I knew much, I fixed for triple that length at nearly 2.5% higher
I broke the loan, copped the fee and massively increased my borrowing capacity as a result.
Been there.... not nice.
I think i was fixed at 7.79% during the GFC.
Oh well. Probably fix again though for the same reason this time around - stability of rates.
My break fee was as high as $40k. I literally checked every single day until it fell below $20k and then happily pulled the plug. Not to mention the extra interest I paid (above the variable rate) while fixed was more than the break fee itself!
Wise move though (thanks SS members for helping me realise).
Doing so allowed me grab $1mil of IPs in the span of 8 months following that (first late 2013, second early 2014, both inner west Sydney). I'm up an order of magnitude over the break fee as a result.
no they are a bit odd, had been asking them to fix it for 1 year since Feb 2014but they kept saying they wanted to do it as part of another purchase I was doing, then I just got a random email from my bankers assistant on xmas eve saying 'just to let you know I fixed it for 2 years' on a stand alone basis... weird hey? they do all sorts of things that I find odd - once they settled on a property for me before I had a chance to return the mortgage docs
Don't you need to sign a new Letter of Offer?
you would think so, but there is nothing in writing at all. I guess they could argue deemed acceptance by not objecting to the email, but they are so good to me I wouldn't want to fire them up
Only applies if rates keep falling - once rates are back on par with what you fixed at there are no break fees as they are based on economic cost.... and rates will return to normal remember just 3 years ago 6.30% was a good variable rate. The current rates are record lows - it is called a record because it doesn't happen very often.
It sounds like a lot but that is actually not that much. I was with wizard for under $1 mill in total borrowings at a low variable rate. Wizard sold to Aussie, Aussie sold to GE, GE sold to Pepper. When the interest rates went up, my loan interest rates went up but they didn't go down again when interest rates went down. I ended up with loans in the 8%+ and 9%+ range. I refinanced the whole lot to AMP and that cost over $9k all up including exit fees, application fees, mortage discharge etc. Over $9k refi costs for under $1 mill in variable rate loans is even steeper than yours I think. Of course again, totally worth it because the new rate was 6.43% at the time. So much less interest than 8%+ and 9%+.
Fixed an investment property loan for 5 years at 4.99% about 6 months ago. No regrets at all, but of course, would have preferred to have done it at today's rates.
I am the sole income earner for the family so am happy to have investment loan a known variable and forget about interest rates for 5 years and let the market do its thing while I get on with life. Not planning to sell any property in the next 5, 10 or 20 years so it is not a worry to be fixed.
Excess funds go into shares and super with a little bit paying down the investment loan to a max of $10,000 per annum.
all the best
Unbelievable rates on the market at the moment.
I am the sole income earner for the family so am happy to have investment loan a known variable and forget about interest rates for 5 years and let the market do its thing while I get on with life. Not planning to sell any property in the next 5, 10 or 20 years so it is not a worry to be fixed.
Excess funds go into shares and super with a little bit paying down the investment loan to a max of $10,000 per annum.
all the best
Unbelievable rates on the market at the moment.
If it's one year, then you don't have all that much money to lose in the unlikely event that the variable rate goes below the fixed.
I actually have no idea what variable rates you're able to get at TMBank, but the standard variable is much higher than 4.15%.
Personally, I think it's a good deal.
