ANZ are dropping fixed rates again

[Strannik]

but fixed term loans expire every day so people HAVE to refinance if they want to continue on fixed....... and the refinancing costs when you are out of your fixed term are just loan establishment fees, so you WOULD save if you refinanced to a lower rate of even -0.2%.

If you refinance because you are out of your fixed interest period, i'm pretty sure you would get those 0.2% if you asked nicely

 

[jingo]

I doubt that offer will still be valid by then.

Yes, possibly not.

I'm not arguing against refinance of fixed loans, i'm merely saying that most of the existing ANZ customers with fixed rate loans wouldn't benefit from 0.2 % decrease anyway.

Yes, this is true. A .2% decrease in rates won't be enough to encourage an existing customer on a fixed loan taken out before the last two interest rate rises to break.

Speaking of your wife's customer, wouldn't he be better off waiting half a year for another interest rate drop and possibly decreasing his breakaway fees in the mean time?

Yes, quite possibly. I am not up with the full details on this customer's loan. My wife mentioned it to me because we have a fixed rate ourselves currently at 8.09% that we are looking to break. The break costs vary daily. Last week it was going to cost us $15,000 to break this loan. Today the costs are around $7,000. My wife is monitoring the situation for us! We will break when it is cost effective for us to do so.

Regards Jason.

 

[rogue]

If you refinance because you are out of your fixed interest period, i'm pretty sure you would get those 0.2% if you asked nicely

Then maybe they should change the report to 'ANZ drops rates on fixed term mortgages for new customers - or those that ask nicely'

 

[ruroshin]

Then maybe they should change the report to 'ANZ drops rates on fixed term mortgages for new customers - or those that ask nicely'

Ah D&Gers always trying to find the bad in the good. I can only assume you've never tried to refinance before. When you refinance you get the "new" rates regardless if you are an existing customer or not. I've done it before and thats what happens.

Also just think about it for a little bit. If as you say the banks are having a hard time getting new customer then surely they wouldn't want to lose their existing customers and do you think they will want to risk that over 0.2%?