CBA Fixed Rate Increase

[Brady]

CBA raised its fixed rate again for 2 & 3 YEAR

2YR from 4.79% to 4.89%

3YR from 4.94% to 5.14%

I just fixed in clients loan yesterday and was planning on switching over some, but didn't. Oh well its only 0.10% for the 2YR.


What's been happening with the other banks? Have the fixed rates now bottomed out and the rise is happening?

I have some funds coming off fixed next March really was hoping that fixed would stay low so could refix at good rate. Fingers crossed.

 

[Peter_Tersteeg]

Several lenders still have some fixed rates sub 5% but quite a few recently raised their 3 year rates. CBA's done fairly well to hold out this long.

People should keep in mind that in almost all cases, with fixed rates you get the rate on the settlement date, not the date you applied for it. You can pay a rate lock fee which will guarantee the rate at the date you apply however.

In most cases the rate lock fee is 0.15% of the loan amount. The CBA charges a flat fee of $750 (good value if the fixed portion is more than $500k, but otherwise a bit steep).

 

[Brady]

Several lenders still have some fixed rates sub 5% but quite a few recently raised their 3 year rates. CBA's done fairly well to hold out this long.

People should keep in mind that in almost all cases, with fixed rates you get the rate on the settlement date, not the date you applied for it. You can pay a rate lock fee which will guarantee the rate at the date you apply however.

In most cases the rate lock fee is 0.15% of the loan amount. The CBA charges a flat fee of $750 (good value if the fixed portion is more than $500k, but otherwise a bit steep).

Which banks still have sub 5% Pete? Any of the large banks have much under 5%, notice St George still has 4.99% for 3YR's


Spot on Pete, I discuss with each client that is fixing that if you aren't prepared to pay the $750 rate lock fee then go variable and wait for settlement than switch, as CBA has no switching fee. Signing documents for a fixed rate with a pending settlement with no rate lock fee is rolling the dice!

 

[Peter_Tersteeg]

Most lenders still have fairly good 2 year fixed rates.

A couple of lenders with sub 5% 3 year fixed currently includes:
AMP
St George group (under their Advantage package)
BankWest
Advantage
Heritage
ME Bank
ING

Obviously not a comprehensive list.

 

[Brady]

AMP's rate is good 4.79% but CBA won't match AMP, only the majors ATM.

Bank of Melbourne 4.95% for 3YR was best of the majors/'largers' that I could find.

 

[Liverpool St]

AMP's rate is good 4.79% but CBA won't match AMP, only the majors ATM.

Bank of Melbourne 4.95% for 3YR was best of the majors/'largers' that I could find.

I just locked in 3 years with Members Equity at 4.69

LS

 

[Risky Business]

I was locked in for 3 years at 5.24% with CBA. When having some problems with the transactional offset account, one of the online banking team mentioned that due to 'wholesale borrowing costs' (or whatever correct term is) she could get me out of the remaining 2 1/2 years fixed and back to a lower variable rate. We exited and relocked with a haggled further discount down to 4.89% for 3 years. After haggling, I am now 0.95% off all loans when variable. All because I initiated contact with the transactional offset. I could kiss that sheila on the phone who advised us that we could exit the fixed rate and relock at a lower one.

 

[Terry_w]

I just locked in 3 years with Members Equity at 4.69

LS

This is still available and will be until, I beleive, they use up the funds marked for this. Amazing rate.

 

[RetireRich101]

looks like it's a race to lock in under 5% for 3 yrs...

I was gonna say the 5yrs CBA is more attractive, then realize they also up that to 5.69% which is now the same as AMP...