CBA fixed rates reduced?

[tdh78au]

Looks like CBA might have reduced their fixed rates?
I was looking at the 1year fixed rate last week at 6.94% -- however checking again today it's at 6.84% (inc. wealth package discount).

Upto 3years is now below 7% (inc. wealth package discount):

1 Year Fixed 6.84% p.a. Comparison Rate 7.26% p.a.
2 Year Fixed 6.94% p.a. Comparison Rate 7.23% p.a.
3 Year Fixed 6.99% p.a. Comparison Rate 7.22% p.a.

Bring it on!

 

[lizzie]

Westpac have dropped theirs too - not that you'd notice.

I'm waiting for low 6's or high 5's before locking in.

 

[Rolf Latham]

Bond yields on the 2 and 3s have come down a little..........so the lenders are kind enough to pass that on

ta

rolf

 

[--(< PJ >)--]

I just locked a few of mine in at 6.94% for 12mths with CBA. Not a big change, but better than a slap in the face!

 

[ali]

I just got 6.54% 1-year fixed for my new IP - no special deal or anything.
Cheers Ali

 

[virgo]

Cba

Hiya

Is that after some discount on some special package?

Wonder whether i can shift my variable to fixed on my existing IP Loan? 6.54 is great!

Mind sharing the contact? Broker or banker? you can PM me if you like.

 

[Aaron_C]

lol 6.54% is good until you start paying SVR after 1 year

 

[ali]

I'm more than happy to share as they have been fantastic and quick. And they do LVRs to 95%. I'ts the Greater Building Society run out of NSW - they have been around forever so aren't some dodgy online outfit. Ph 02 49219936.

I have other loans with other lenders and would shift them all over if I didn't have hefty mortgage exit fees.

And Aaron C - I was originally going with their SVR of 6.94% (that's the comparision rate btw) until they dropped their fixed rates. Either way, I am well within my comfort zone as it will be cashflow positive.
Cheers Ali

 

[Aaron_C]

I'm more than happy to share as they have been fantastic and quick. And they do LVRs to 95%. I'ts the Greater Building Society run out of NSW - they have been around forever so aren't some dodgy online outfit. Ph 02 49219936.

I have other loans with other lenders and would shift them all over if I didn't have hefty mortgage exit fees.

And Aaron C - I was originally going with their SVR of 6.94% (that's the comparision rate btw) until they dropped their fixed rates. Either way, I am well within my comfort zone as it will be cashflow positive.
Cheers Ali

That sounds like a good deal. Well done

 

[Mick C]

Looks like CBA might have reduced their fixed rates?
I was looking at the 1year fixed rate last week at 6.94% -- however checking again today it's at 6.84% (inc. wealth package discount).

Upto 3years is now below 7% (inc. wealth package discount):

1 Year Fixed 6.84% p.a. Comparison Rate 7.26% p.a.
2 Year Fixed 6.94% p.a. Comparison Rate 7.23% p.a.
3 Year Fixed 6.99% p.a. Comparison Rate 7.22% p.a.

Bring it on!

Yea...ALL the banks has dropped their fix rate- and i mean ALL ( even the smaller players, non-conforming and commercial! 0.o)

Good for Home owners who wants to fix..but i reckon there is a few more rate drop to come + not a good sign for the economy.

Regards
Michael

 

[mech81]

I'm more than happy to share as they have been fantastic and quick. And they do LVRs to 95%. I'ts the Greater Building Society run out of NSW - they have been around forever so aren't some dodgy online outfit. Ph 02 49219936.

I have other loans with other lenders and would shift them all over if I didn't have hefty mortgage exit fees.

And Aaron C - I was originally going with their SVR of 6.94% (that's the comparision rate btw) until they dropped their fixed rates. Either way, I am well within my comfort zone as it will be cashflow positive.
Cheers Ali

What were the fees and the all up cost that you had to pay Ali to get this loan? Hope you don't mind me asking, did you switch from a another bank?

 

[cjandlj]

tell tale sign was when they reduced the 6 month term deposit rate a month ago.

 

[ali]

What were the fees and the all up cost that you had to pay Ali to get this loan? Hope you don't mind me asking, did you switch from a another bank?

There is a $500 establishment fee but no other fees, ongoing, redraw or otherwise. When I first applied for it last financial year there wasn't an establishment fee and I guess they wacked that on after the Federal Government banned exit fees on July 1. I imagine it is hard to get a loan without an establishment fee now. I didn't switch from another bank as this is a new IP.
I'm not sure if it is a great time to fix as fixed rates at least seem to be coming down (and variable rates may follow), but I couldn't pass it up
Cheers Ali

 

[mech81]

There is a $500 establishment fee but no other fees, ongoing, redraw or otherwise. When I first applied for it last financial year there wasn't an establishment fee and I guess they wacked that on after the Federal Government banned exit fees on July 1. I imagine it is hard to get a loan without an establishment fee now. I didn't switch from another bank as this is a new IP.
I'm not sure if it is a great time to fix as fixed rates at least seem to be coming down (and variable rates may follow), but I couldn't pass it up
Cheers Ali

Thanks for that Ali. Your guess is probably as good as mine though I just heard that the inflation figures just released seemed to point that with the higher than expected inflation figures, RBA is likely to increase rates.

Darn it, should have asked for my interest discount earlier...

 

[Nth Brisbanite]

This doesn't make sense. ANZ today predicted that RBA will increase rates this Tuesday. It appears that most other economists also think that there will be a rate rise this year.

I thought that fixed rates would be increasing not decreasing.

 

[ali]

I am not sure how direct the relationship is between fixed and variable rates, except that the market will tend to buy more of whichever is cheaper
(obviously).
However, I did ask about this a few months ago and some helpful and financially-savvy Somersoft members explained it in this thread:

http://www.somersoft.com/forums/showthread.php?t=68639

Cheers Ali

 

[alexlee]

I am not sure how direct the relationship is between fixed and variable rates, except that the market will tend to buy more of whichever is cheaper
(obviously).

Actually, no, that's not correct. Short term money is not the same as long term money.

 

[Peter_Tersteeg]

This doesn't make sense. ANZ today predicted that RBA will increase rates this Tuesday. It appears that most other economists also think that there will be a rate rise this year.

I thought that fixed rates would be increasing not decreasing.

Fixed rate pricing is not based on RBA pricing as explained in other threads.

Lenders are passing on the cost savings of fixed money at the moment. I suspect this has a lot to do with the elimination of early repayment fees on variable rate products. By locking customers into a fixed rate the banks are locking in a known profit margin.

The profit margin may not be as good as what they'd get on variable loans, but it essentially guaranteed. Similar to certain types of options trading.

 

[ali]

That's really interesting, PT Bear.
Does that mean that fixed rates will be better value than before the changes?
Cheers Ali

 

[Mick C]

This doesn't make sense. ANZ today predicted that RBA will increase rates this Tuesday. It appears that most other economists also think that there will be a rate rise this year.

I thought that fixed rates would be increasing not decreasing.

It a way for the bank to HOLD on to you and keep you with them for 3-5 years...these days a lot of ppl switch bank every 2-3 years i find...

The bank doesn't make a lost from the fix rates...they reserved a set "portion/amount" with treasury at the time you fix- so their profit margin is already is built into the rate they fix for you ( normally 1.5-2.5%) ....its now a matter of KEEPING the client for a long period of time.

Regards
Michael