The Rock are today quoting 5.99% for 1 Yr fixed. I know it not 3 years but seems we may be heading there
ANZ: 3 year fixed 6.44%
- Thread starter simo74
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The Rock are today quoting 5.99% for 1 Yr fixed. I know it not 3 years but seems we may be heading there
I have a 50% lock at 5.35% coming out in June 2012, so i'm in your camp as a general rule. However I cant see rates (fixed or variable) going up before March-June 2012 at least.
Wait till the worst Xmas retail figures for a decade hit the headlines in Jan! It will be shortly after that that i'll look to take on another 2-3 year partial fix. Well thats why my crystal ball is telling me anyway
Lost me... what do you mean or what do you want to happen & why ?
Jaycee
Say rates go 5.99% on a fixed. Then the economy moves up and rates start to increase again. The bank comes out and says in 2 weeks they're increasing rates to 6.29.
If you didnt lock your interest rate down and you have 3 weeks to settle then you settle at 6.29%.
However you can pay .Xx% of your loan amount or a set fee and they'll make sure you get your 5.99%.
If its a switch from variable to fixed with same lender different story as usually they'll be more quick about it. But for 'new business' it might put people in over a barrel
Say rates go 5.99% on a fixed. Then the economy moves up and rates start to increase again. The bank comes out and says in 2 weeks they're increasing rates to 6.29.
If you didnt lock your interest rate down and you have 3 weeks to settle then you settle at 6.29%.
However you can pay .Xx% of your loan amount or a set fee and they'll make sure you get your 5.99%.
If its a switch from variable to fixed with same lender different story as usually they'll be more quick about it. But for 'new business' it might put people in over a barrel
Yeah all totallly over my head mate
I pay 7.3% roughly now, all variable
Are you saying refiniacning for 3 years fixed at 6.4% will be bad or not ??
The way I see it., I will be saving 0.9% interest per year for 3 years... 0.9% of $1m = $9k pa ???
7.3? wow whos that with...hopefully it's a basic loan ( no annual fee etc)
Regards
Michael
Do banks load the fixed rates when calculating serviceability?
Most banks do.
A selected few as part of their feature will not if you fix for 5 years +
Regards
Michael
Thanks Michael. Is it the same rate loading that comes with variable loans ie 2% or do they vary per bank?
1.85-2.2% as per lender..most are 2%
End of the day if you cant service a loan under a variable rate....it wont be any better under fixed lol - they use the same CALCULATOR.
Unless you go for some selected lenders that will not do rate loading for 5years + as mentioned.
I am on 7.3 with CBA wealth package but in the middle of getting something better
You must have been a long long time customer of CBA to be on that rate
Glad your getting a higher discount soon.
Michael,
What rate am I supposed to be on ?
If you were my broker, what words would you be having with yourself ?
The Current offer for CBA wealth package member- new and existing ( have to ask tho...not automatically given) are ( variable rate product...not LOC etc):
$250-$500k loan ---- 0.9% discount (LVR 80%<) OR 0.85% ( 0.9% LVR <)
$500,000 ---- 1% discount ( LVR 80%<) Or 0.95% ( o,9% >)
1% + for loan over $850,000 + LVR under 80%.
So really most mortgage holder with the major 4 bank should be on a rate NO MORE then 7.1%-- most would be around 6.9-7% Variable.
P.s CBA's SVR is 7.8%
Regards,
Michael
i know the purpose of fixing is not to pick the bottom but as a hedging instrument BUT for those willing to give opinions, would you fix now if you could get a 3yr fixed between 6.4-6.6%?
RBA would have to drop cash rate twice for you to even out...question is how bad will things get? Noone knows but I'm very tempted to fix now having missed the boat the last GFC.
RBA would have to drop cash rate twice for you to even out...question is how bad will things get? Noone knows but I'm very tempted to fix now having missed the boat the last GFC.
I've done IO loans in the past on fixed rate, generally only IO for the fixed term then revert to P&I when they move to variable.
That being said the package discounts being discussed above normally only apply to variable loans in my experience.
