You can be assured that if fixed rates were not advantageous to the banks they would not be offering them.
CBA and ING lift fixed rates
- Thread starter Rolf Latham
- Start date
You can be assured that if fixed rates were not advantageous to the banks they would not be offering them.
I just had a look on ING (as I am with them ) there fixed 2 year rate is 5.39% , if I am reading you post right you are saying it's 5.64
am I missing something ?
Martin
Hi Rolf
I have all my loans with CBA, I fixed one on Friday for 5 years at 6.24% & will fix another on Monday these 2 will be 50% of my borrowings. I am goign to gamble that the variable rates will stay low for another 18 months before reaching the 5 yr fixed rate.
I am curious of why CBA let it be known that they were going to raise the fixed rates. Its like they did it intentionally to get people to panic into locking in rates? Is it normal for them to announce tot eh brokers etc that the fixed rates willb e goign up.
Spud
I have all my loans with CBA, I fixed one on Friday for 5 years at 6.24% & will fix another on Monday these 2 will be 50% of my borrowings. I am goign to gamble that the variable rates will stay low for another 18 months before reaching the 5 yr fixed rate.
I am curious of why CBA let it be known that they were going to raise the fixed rates. Its like they did it intentionally to get people to panic into locking in rates? Is it normal for them to announce tot eh brokers etc that the fixed rates willb e goign up.
Spud
Hiya Spud
Professional courtesy I suppose
many lenders do the same
ta
rolf
Professional courtesy I suppose
many lenders do the same
ta
rolf
OMG
So they have!! I've been looking at them all weekend and have just noticed a change in them on Monday morning. Was about to call broker and instruct them to fix...Didn't happen with WBC this morning! was looking at their interest rate page just last night, and it jumped up by this morning
True
But most of our clients and friends that are on the electronic newsletter would have received "notification" of rates going up..
ta
rolf
But most of our clients and friends that are on the electronic newsletter would have received "notification" of rates going up..
ta
rolf
Fixed 226k with CBA for 2 years for 5.24% .....will fix another 149k with Adelaide Bank for 5.59% tomorrow. That is about 40% of my loans.
Will wait to see what happens...after that! I want to ensure that I hedge my bets now....because interest rates do move fast...if you snooze you lose.
Will wait to see what happens...after that! I want to ensure that I hedge my bets now....because interest rates do move fast...if you snooze you lose.
I'm just glad I locked one of my loans in for 4.99% for 3 years at the end of last year, I rememeber when I did it everyone was saying that they were going to go lower.
I thought....variable most likely fixed for 1 year...maybe but not for 3 years. our other loans are all variable but feel good about that call.
I thought....variable most likely fixed for 1 year...maybe but not for 3 years. our other loans are all variable but feel good about that call.
I think the minimum period should be 5 years as it will take one year before rates rise in the present climate. So 3 years is likely to come out in a high period. Case in Point: I fixed in 2003 at 6.19% for five and missed most of the rises. Presently 5% variable.
The drops we have seen are very rare and very likely to take a while to rise IMO. The real economy is still in trouble despite what some US banks are reporting. Remember the economy boomed in the US because house price rises allowed owners to use LOC to fund extravagent spending. Just like is AUS. That will not happen again quickly.
However all bets are guesses as we have handouts here and there and FHOG boosts unsetting the fundamentals.
Peter
The drops we have seen are very rare and very likely to take a while to rise IMO. The real economy is still in trouble despite what some US banks are reporting. Remember the economy boomed in the US because house price rises allowed owners to use LOC to fund extravagent spending. Just like is AUS. That will not happen again quickly.
However all bets are guesses as we have handouts here and there and FHOG boosts unsetting the fundamentals.
Peter
i just heard on the news this morning - the presenter on sunrise was talking about "indicating from the banks that we've seen the lowest interest rates in this cycle"....and then some crap about them "being able to pass on all future rate cuts".
did i not say that was the case? cunning i may be, but the banks are worse.
did i not say that was the case? cunning i may be, but the banks are worse.
Disagree. Historically we are major lows. Fix for ten years and you are 95% sure of winning. The banks know that, hence the higher rate. As well as insurance you also fix your costs when you go for the next IP.
Peter
lender wins either way
Their margin is protected
ta
rolf
Their margin is protected
ta
rolf
The only thing I am worried about is my strategy in terms of risk management.
Fixing rates is all about risk management....the key is not to have all your rates expire at once. This is why I fix and stagger when my rates come off.
I have employed this strategy for the last 10 years and it works well.
I can't see the current low rates lasting forever as it is just like any cycle.
I fixed 40% of my loans yesterday and today. Another 30% is still under old fixed rates of 7.45% and 6.95% and will expire around middle of 2010. I am waiting as long as possible before I unfix these....if I time it right...with the fixed rates moving up the break costs will not be as hefty and I can still lock in at a good rate as the interest rates move up!!
Fixing rates is all about risk management....the key is not to have all your rates expire at once. This is why I fix and stagger when my rates come off.
I have employed this strategy for the last 10 years and it works well.
I can't see the current low rates lasting forever as it is just like any cycle.
I fixed 40% of my loans yesterday and today. Another 30% is still under old fixed rates of 7.45% and 6.95% and will expire around middle of 2010. I am waiting as long as possible before I unfix these....if I time it right...with the fixed rates moving up the break costs will not be as hefty and I can still lock in at a good rate as the interest rates move up!!
