Now i am no whizz at this but the fact that the lower 2 and 3 year rates are below current variable. This implies that the banks believe rates to drop further during this period.This is why some believe the 2 and 3 year rates not to be a good pick as there is a good chance the variable may be below these points in the short term.
Absolutely. It's a gamble.
But some people are saying: 'some fixed rates are currently HIGHER than variable so this may not be a good gamble'. And others are saying exactly the opposite: 'some fixed rates are currently LOWER than variable rates so this may not be a good gamble'. If both scenarios were certain, no-one would ever fix. Therefore I think if you want to fix, at some stage you've just got to decide when the time is right for you, and you can live with the outcome.
trajik, I believe you'll find this situation is possible for both Westpac and NAB depending on exactly what kind of mortgage you currently hold, and what kind you can switch to.
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