Fixing or variable?

With the news of possible rises before xmas, what are you gonna do on your variable loans?

Im on 5.21% va at the moment, looking at fixing soon, but unsure of when.
 
With the news of possible rises before xmas, what are you gonna do on your variable loans?

Im on 5.21% va at the moment, looking at fixing soon, but unsure of when.

The banks have already factored in the coming interest rate rises, so the best time if you wanted to fix was back in April. I can't see interest rates rising to much anyway and the current 5 yr fixed rates aren't attractive in my view. I will be sticking to my variable rate.
 
You wouldn't be fixing at 5.21% though.

2 year fixed rates are 6.99% and 3 years at 7.19% (Westpac). You will certainly get a bigger jump by fixing IMO.
 
We couldn't fix back when the time was right (the rates went up while our documents were being generated on our last three, and you can't rate lock before there is a loan doc), so we're just riding out the low and bracing for the rise. We don't think we'd gain anything by fixing.
 
I realize I wouldn't get a fix at 5.21, I was factoring in at least an extra 1.5%. Back in April I didn't even have a loan.

Might stick with variable for now, see what the deal is early next year.
 
Just save like crazy now while the interest rate is nice and low so that when/if they head back up you have enough squirreled away as a nice buffer/deposit.
 
Based on the figures I've been tracking its now too late to fix.
The sweet spot was sometime in march for 3 year fixed loans.

At least I'll have a better idea how it works next time.

I'm planning to stick with variable.

Date........ Variable Fixed 1 Fixed 2 Fixed 3 Fixed 4 Fixed 5
4/11/2008 7.9 7.09 7.09 7.29 7.39 7.39
13/11/2008 7.3 7.09 7.09 7.29 7.39 7.39
1/12/2008 7.3 6.69 6.59 7.09 7.39 7.39
12/12/2008 6.3 6.69 6.59 7.09 7.39 7.39
12/01/2009 6.3 5.99 5.89 6.49 6.99 6.99
29/01/2009 6.3 5.99 5.89 6.14 6.49 6.49
16/02/2009 5.4 5.99 5.89 6.14 6.49 6.49
27/03/2009 5.4 5.49 5.39 5.59 6.39 6.39
30/04/2009 5.4 5.49 5.54 5.99 6.59 6.64
18/09/2009 5.4 5.59 6.34 6.99 7.64 7.64
 
as one of the economists said on today tonight today, if you were to fix now you would need rates to go up by 6% within next 2 or 3 years to break even, and this isn't happening
 
With the news of possible rises before xmas, what are you gonna do on your variable loans?

Im on 5.21% va at the moment, looking at fixing soon, but unsure of when.

I fixed 65% of my loans in 2007,
4 for 10 years at 7.18%
1 for 20 years at 7.28%.

I didnt know that come 2009 fixing for such a period would be more expensive than in 2007 even though RBA rates are much lower now.
But i made the decision in 2007 because it was right for me.

So the question is what is right for your personal financial circumstances.
 
Geez

I have a 5 yr IO-FI loan coming due in SEPT 2010 and thats at 6.99%, the scenario 5 yrs ago didn't have a Global Economic Crisis thrown in.....and here they are talking about 40+ yr lows for bank loans :confused:

Glad I have some Banks in my stock portfolio, they are laughing all the way to the......well you know the answer
 
With the news of possible rises before xmas, what are you gonna do on your variable loans?

Im on 5.21% va at the moment, looking at fixing soon, but unsure of when.

Fixed majority back in May, only property loan I have left now on variable I'll leave there. I have enough security of payments with the other loans, so will let this one ride on the lower variable rate. Even an increase to 7%+ of the SVR will still see this loan under what it was fixed at this time last year.
 
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