Simple yes or no question.
If bank offered you 4.99% fixed for 3 years today, would you do it?
- Thread starter The_Bludger
- Start date
I should qualify my no, with not yet. Too much downside sentiment on rates to make a call today. That may change.
The numbers for me (and I dare say others) would be nice, actually very nice between 4 & 4.5%.
Oops that's more than one word
The numbers for me (and I dare say others) would be nice, actually very nice between 4 & 4.5%.
Oops that's more than one word
hi
no such thing as a simple answer
what lvr
5 percent @ 40%lvr
no
5% at 95% lvr no lmi
yes
even with lmi maybe
and is it on
comm or resi or rural
5% at 80% lvr on rural
yes
5% fixed and a 300k credit card so can use as a line of credit
yes
the variable are on and on
so sorry to say that it sounds simple but its not
and there arex rates of 5% now
the lvr is the main issue
no such thing as a simple answer
what lvr
5 percent @ 40%lvr
no
5% at 95% lvr no lmi
yes
even with lmi maybe
and is it on
comm or resi or rural
5% at 80% lvr on rural
yes
5% fixed and a 300k credit card so can use as a line of credit
yes
the variable are on and on
so sorry to say that it sounds simple but its not
and there arex rates of 5% now
the lvr is the main issue
Still think that the variable has a fair way to drop. Will probably be below 5% by March 09. It'll be about that time that I may think of fixing as fixed could be lower than 4.99%.
ditto .. i'm waiting to see what the 5yr rate does early next year.
... but then ... if cash was really tight atm, i'd do it.
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Fixing for 3 yrs is likely to see you exiting the fixed rate period when the economic cycle is giving us significantly higher & rising IRs.
I'm waiting for 5+ yrs IRs to fall some more & would be happy paying a slightly higher rate for a significantly longer period. We'll likely be closer to the next easing cycle by then, with higher rents.
I'm waiting for 5+ yrs IRs to fall some more & would be happy paying a slightly higher rate for a significantly longer period. We'll likely be closer to the next easing cycle by then, with higher rents.
i agree with keith. looking back the interest rate highs and lows over the last 25 years, rates seem to go in approximately 5 years cycles. i'd rather pay slightly more over the longer period, to come out during what "should be" the next lull.
locking in now for 3 years, at the lull, would potentially bring one out at a peak - or an upwards trend.
I am also waiting out for around 5% fixed for 5 year Early-mid net year it looks like it will be on the cards.
I would take half my debt at the 3 year rate and another half at a 5 year rate. Unlike most posters I would be happy with a 5 year in the high 5's, I don't think we will see too much better than that. Westpac's 4.99% was the cheapest we will see in this cycle for a 3 year rate.
I think this is a fascinating poll, because yet again it proves that people have no idea what they want. This is shown time and time again in studies - if you ask people what they want, they tell you one thing. When presented with the actual options they chose something else.
Currently about 1/3rd of people are saying "yes" on this poll. Given that Westpac actually are offering 4.99% for 3yr fixed rate .. are 1/3rd of people actually moving their loans around?
If you voted yes on this poll, but aren't actually taking up the offer - why is that?
Currently about 1/3rd of people are saying "yes" on this poll. Given that Westpac actually are offering 4.99% for 3yr fixed rate .. are 1/3rd of people actually moving their loans around?
If you voted yes on this poll, but aren't actually taking up the offer - why is that?
Murtagh
I think all it proves is the simplicity of the question. I would fix in at 4.99%, but I'm not going to change banks to chase after a rate when the other banks will probably come some way to meeting this price anyway. If I was with Westpac I'd be in, I'm not with Westpac (everyone but, or so it seems...) and I'm not prepared to jump ship just yet, so I am not fixing it in.
For a lot of people the DEF's and new mortgage insurance costs of jumping bank will offset a lot of the savings anyway, especially if they believe (which most seem to) that their bank's rates will join Westpac anyway.
Noel
I think all it proves is the simplicity of the question. I would fix in at 4.99%, but I'm not going to change banks to chase after a rate when the other banks will probably come some way to meeting this price anyway. If I was with Westpac I'd be in, I'm not with Westpac (everyone but, or so it seems...) and I'm not prepared to jump ship just yet, so I am not fixing it in.
For a lot of people the DEF's and new mortgage insurance costs of jumping bank will offset a lot of the savings anyway, especially if they believe (which most seem to) that their bank's rates will join Westpac anyway.
Noel
I voted no, it's way to early to be fixing unless you have to. Westpac are playing mind games about pulling the 4.99% rate for 3 years off the market. They are getting people to make rash decisions because they are scared the offer will not be there soon. Well I would anticipate by March next year you will be able to get 3.99% for 3 years and 4.99% for 5 years. The variable rate on a pro pack will be around 4.5%. Well that's my guess anyway.
