Fixed home loan goes under 6pc

[Nth Brisbanite]

From today's news: Can any other financial institution beat this rate?

THE financial doom and gloom looks to be presenting a silver lining for would-be home buyers, with one building society now offering a fixed-term mortgage under six per cent.

The Greater Building Society announced it had lowered its fixed one-year loan to 5.94 per cent.
It also lowered its three-year loan to 6.35 per cent.
"The Greater Building Society has today announced Australia's lowest home loan rate, taking its one-year fixed home loan below six per cent per annum to 5.94 per cent per annum," the building society said in a statement.
"The Greater has also reduced its three year fixed home loan rate to 6.35 per cent per annum."

 

[tvadera]

wow, thats a good rate for 1 year. So we def expect rate cuts happening soon. relief for mortage holders. However if prices keep sliding down as it has already started, bit of a worry

Regards
TV

 

[tvadera]

called the bank, comp rate is 6.79% or 6.69% (one or the other), has all sorts of fees (application, exit fees, if you default say once end of month penalties, etc)

So 5.95% is just to get attention

currently CBA n ANZ and NAB does provide good fixed rates (cant remember but from memory its 6.38 & 6.69%)

Regards,
TV

 

[Aaron_C]

Like all the brokers here have said - rate is but only one consideration when getting finance.

 

[Nth Brisbanite]

called the bank, comp rate is 6.79% or 6.69% (one or the other), has all sorts of fees (application, exit fees, if you default say once end of month penalties, etc)

So 5.95% is just to get attention

currently CBA n ANZ and NAB does provide good fixed rates (cant remember but from memory its 6.38 & 6.69%)

Regards,
TV

It would be good to get the comparison rate for CBA, ANZ, Westpac and NAB. Anyone know where I can get that information.?

5.95% still seems a great rate especially if you can negotiate down application and other fees. Didn't think that financial institutions can charge exit fees any more!

 

[Rolf Latham]

5.95% still seems a great rate especially if you can negotiate down application and other fees. Didn't think that financial institutions can charge exit fees any more!

Yes a lender can still charge an appropriate fee for break costs on a fixed rate contract or a honeymoon rate. In addition admin costs associated with the entry and exit are fine.

Comp rates dont mean much in reality........like comparing a carrot to an orange because they are the same colour .......

IMO choosing a lender on a one year window with the hope of refinancing out in 12 mths time is a high risk strategy in times where our financial markets are very jittery

ta

rolf

 

[jaycee]

Like all the brokers here have said - rate is but only one consideration when getting finance.

Too true, but I think many people know this too...

I guess what peopel are trying to figure out or thinking / wondering about is "I wonder if the rest of the conditions are the same as my curernt mortgage(s) meaining I coudl pbe paying less fo rthe same thing as now"

I'd suggest that people aren't sure if that's the case or not, nor how to find out accuratley, hence threads such as this asking the question.

As a broker, do you know ?

 

[Aaron_C]

Too true, but I think many people know this too...

I guess what peopel are trying to figure out or thinking / wondering about is "I wonder if the rest of the conditions are the same as my curernt mortgage(s) meaining I coudl pbe paying less fo rthe same thing as now"

I'd suggest that people aren't sure if that's the case or not, nor how to find out accuratley, hence threads such as this asking the question.

As a broker, do you know ?

When it comes to fixed rate mortgages people tend to want their cake and eat it too - so if rates come down below their fixed rate and/or the new standard variable rate they go on after the fixed-rate ends is higher than what everyone else gets they start complaining. Happens all the time

 

[abbyfresh]

So what are peoples pridictions of what the 1,2, 3 and 5 year fixed rates will be in 3 or 6 months time - offered by the big 4 - and not fringe lenders to be safe.

 

[INVSTOR]

I'm contemplating fixing for 3 years with a small bank at 6.35% with minimal fees or fixing with a big 4 bank for 2 years at 6.33% with minimal fees (fees being a possible valuation) I doubt any fees as LVR is about 50%

 

[jaycee]

When it comes to fixed rate mortgages people tend to want their cake and eat it too - so if rates come down below their fixed rate and/or the new standard variable rate they go on after the fixed-rate ends is higher than what everyone else gets they start complaining. Happens all the time

So what's the wise thing to do then ?

Stay wherever you are ?

 

[lizzie]

The Greater also has very stringent application requirements - moreso than the banks (if possible) in regards to servicibility

 

[Aaron_C]

So what's the wise thing to do then ?

Stay wherever you are ?

I usually recommend staying variable. You never know what's going to happen to either your own personal situation (income wise) and there's never any guarantee that your rate will revert back to the best variable rate at the expiry of the fixed term. The only exception to this rule would be if having a fixed rate helps the borrower increase their serviceability or if they want loan insurance.

 

[jaycee]

I usually recommend staying variable. You never know what's going to happen to either your own personal situation (income wise) and there's never any guarantee that your rate will revert back to the best variable rate at the expiry of the fixed term. The only exception to this rule would be if having a fixed rate helps the borrower increase their serviceability or if they want loan insurance.

Thank Aaron, that was a very succint answer, and I wasn't sure it would be so easy to answer. Cheers.