Hiya Sun
I aint no expert, and certainly not a specialist in fixed rates
Fixed rates for me and when clients ask, are not about getting a "better" deal at any point in time, but about managing risk of loss.
If you are a marginal borrower, in that I can JUST afford this, until 45 days ago, the average punter would have to hedge their bets on a fixed rate.
90 days ago the RBA and the government were still talking about braking our run away economy, and many many forecasters were talking double digit cash rates, with some talking 14 % retail ( please note there is still some risk of this in my view in the middle term of around 2 to 4 years, if the only vehicle we have to slow inflation is rates)
Now, the economy looks broken, rather than "braked", largely due to perceptions from offshore fallout, and a likely loss of consumer confidence.
And if you are in a fixed rate, and the lowering of the floating rate leaves you high and dry.................tough bickies. You are now in managing hindsight risk, rather than managing riks of loss.
ta
Rolf
I aint no expert, and certainly not a specialist in fixed rates
Fixed rates for me and when clients ask, are not about getting a "better" deal at any point in time, but about managing risk of loss.
If you are a marginal borrower, in that I can JUST afford this, until 45 days ago, the average punter would have to hedge their bets on a fixed rate.
90 days ago the RBA and the government were still talking about braking our run away economy, and many many forecasters were talking double digit cash rates, with some talking 14 % retail ( please note there is still some risk of this in my view in the middle term of around 2 to 4 years, if the only vehicle we have to slow inflation is rates)
Now, the economy looks broken, rather than "braked", largely due to perceptions from offshore fallout, and a likely loss of consumer confidence.
And if you are in a fixed rate, and the lowering of the floating rate leaves you high and dry.................tough bickies. You are now in managing hindsight risk, rather than managing riks of loss.
ta
Rolf