Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
my banker went and fixed one of my loans for 2 years without asking, on xmas eve. Quite annoying as I could see this happening.
What? Surely there's more to this story.
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.
I win the Regret Trophy. Must have been circa 08ish locked in for 5 years at 8.9%! And I rode it out because I was still on my L Plates. That's stubborn dedication. And a 30k break fee.
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?
Hard to know at the time. For me the biggest problem with fixing long is inability to sell.
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%+.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!
Spludgey, we are planning on the 4.15 fixed for a year as well, but I'm thinking with the cut today it may go lower. Thoughts? TM Bank too.