If bank offered you 4.99% fixed for 3 years today, would you do it?
- Thread starter The_Bludger
- Start date
Sorry was referring to the poll question, not the previous posts.
I think you are dreaming 3.99% fixed for 3 years...has that ever even been offered.
yeh, in the US.. thats what got them into trouble!
Thanks for the replies everyone. Well I decided to lock in half my loans in at 4.99% at 3 years and the other half will remain variable. Seems like it is an offer too good to refuse, as there is a rumour going around that this offer ends COB today, but who knows, maybe in 1 years time, I'll be kicking myself. I can't remember ever paying that sort of low interest rate, even when it was variable and I did ok servicing loans back then, so I'm pretty happy now. If rates go down further or even up, I still win, partly.
Ditti with the option to wait to Easter 09 to test anything better. Very tasty
Peter
Congratulations!
50% is not bad $ cost averaging approach. Relax and dont regret further drops on that 50%.
Like a Poker Game:You made a safe call and walked away from the table with your kitty intact. and some serious upside. Whilst all indications are more drops, go back 6 months and it was more rises.
Peter
I like the idea of coming out of a 5 or 10 year fixed to a place where there have also been 5 or 10 years of rent increases! This would sit nicely with the original intention of buy and hold and put money in the pocket as we are approaching our '60's (gulp!)
Also waiting a tad longer before fixing, at this point all 7 of my lenders have a 2 year fixed with a range between 5.19% and 5.99%, whereas on 3 year fixed only Westpac at 4.99% is showing a rate below 6.09% the others are 6.44%, 6.49% and 6.69%. 10 year best rate seems to be the Westpac 6.79%, with only 4 of my lenders offering 10 years, the other 3 are 7.09%, 7.49% and 7.99%
Sadly the only loan with Westpac is a land and construction loan and we haven't started to build yet so I can't fix it, must build soon and finish quickly! Actually does anyone know whether I would be able to fix the part of the loan already drawn which was used to settle the land?
Also waiting a tad longer before fixing, at this point all 7 of my lenders have a 2 year fixed with a range between 5.19% and 5.99%, whereas on 3 year fixed only Westpac at 4.99% is showing a rate below 6.09% the others are 6.44%, 6.49% and 6.69%. 10 year best rate seems to be the Westpac 6.79%, with only 4 of my lenders offering 10 years, the other 3 are 7.09%, 7.49% and 7.99%
Sadly the only loan with Westpac is a land and construction loan and we haven't started to build yet so I can't fix it, must build soon and finish quickly! Actually does anyone know whether I would be able to fix the part of the loan already drawn which was used to settle the land?
Congratulations!
50% is not bad $ cost averaging approach. Relax and dont regret further drops on that 50%.
Like a Poker Game:You made a safe call and walked away from the table with your kitty intact. and some serious upside. Whilst all indications are more drops, go back 6 months and it was more rises.
Peter
Thanks Peter. Rudds continuous commitment to save our econonmy and throw billions at it made me do it. With all the billions they are spending, ie more jobs, more growth, I can't see our economy going into a deep recession, a mild one maybe.
Let's see how we go.
http://business.theage.com.au/business/rudd-pumps-47b-into-infrastructure-20081212-6x7v.html
sorry maybe I got it wrong as I thought it was a poll of who woud take the deal and that it was a generic question
it would have been better to ask this is the loan would you take it or structure different.
for me it not the best way to get a loan is to ask a this is the raet would you take it and then go and get it as loans are very diffferent.
and have lots of different things attached
so its not recommended to take a one suit fits all for me.
I would be interested in why you would take a 4.99% fixed for 3 or 5 years when there are alot better deals around at the moment and there will be alot more still to come.
you can get 2.5% currency loan and fixed for 10 years but the risks are alot different but that not the question in the post.
nor is there a min amount of the loan.
for me risk and lvr is the major thing to look at and who the lenders is and that lenders risk profile.
but thats me
it would have been better to ask this is the loan would you take it or structure different.
for me it not the best way to get a loan is to ask a this is the raet would you take it and then go and get it as loans are very diffferent.
and have lots of different things attached
so its not recommended to take a one suit fits all for me.
I would be interested in why you would take a 4.99% fixed for 3 or 5 years when there are alot better deals around at the moment and there will be alot more still to come.
you can get 2.5% currency loan and fixed for 10 years but the risks are alot different but that not the question in the post.
nor is there a min amount of the loan.
for me risk and lvr is the major thing to look at and who the lenders is and that lenders risk profile.
but thats me
Interesting, can you elaborate? Are these "safe" loans?
Why you say dat?
hi The_Bludger
not sure what you mean by a safe loan.
there is no such thing as far as I know even mr rudd has guaranteed the deposits in the banks but has not guaranteed the bank.
so there is no such thing as a safe loan.
loan is only as safe as the bank behind it and it that regard these loans are safer then the aust banks.
but having said that the bigger you are the harder they fallso I would not be saying anything is safe in this current financial world
for me it not anissue how safe a loan is its more an issue of rate against market movement
and this is minamised but thats for a different post.
as for rate still to go down here
I think they will
and I think 1 to 1.5 off is still to come.
but feb will be the turning point for me.
but the post was would you take it not I am thnking of taking it is it a good deal
and thats why I am a bit confused if you want a warm fuzzy feeling that you have done the right thing well for me.
the rates I think will still be shaved a bit more and the fixed will follow down
the lvrs are what I look at and when they go up to 85 and 90% low or no doc then I would be interested but until then I am not as there are better deals out there and not in aust
there is rates of 100% still available just not here so when the banks here want to lend then I will re look atthem but at the moment with 65 and 70% lvr lending they are not in the market to lend they are sat their hands and no wonder they are being sacked.
when they are all sacked and someone comes in and gives credit a kick up the a--- and they start to lend again then we all will be better off.
but until then they will keep of cutting numbers until it will bethe last person turn of the lights and that will be the guys in credit.
but again thats a different post
....,,,
for the ones missed
not sure what you mean by a safe loan.
there is no such thing as far as I know even mr rudd has guaranteed the deposits in the banks but has not guaranteed the bank.
so there is no such thing as a safe loan.
loan is only as safe as the bank behind it and it that regard these loans are safer then the aust banks.
but having said that the bigger you are the harder they fallso I would not be saying anything is safe in this current financial world
for me it not anissue how safe a loan is its more an issue of rate against market movement
and this is minamised but thats for a different post.
as for rate still to go down here
I think they will
and I think 1 to 1.5 off is still to come.
but feb will be the turning point for me.
but the post was would you take it not I am thnking of taking it is it a good deal
and thats why I am a bit confused if you want a warm fuzzy feeling that you have done the right thing well for me.
the rates I think will still be shaved a bit more and the fixed will follow down
the lvrs are what I look at and when they go up to 85 and 90% low or no doc then I would be interested but until then I am not as there are better deals out there and not in aust
there is rates of 100% still available just not here so when the banks here want to lend then I will re look atthem but at the moment with 65 and 70% lvr lending they are not in the market to lend they are sat their hands and no wonder they are being sacked.
when they are all sacked and someone comes in and gives credit a kick up the a--- and they start to lend again then we all will be better off.
but until then they will keep of cutting numbers until it will bethe last person turn of the lights and that will be the guys in credit.
but again thats a different post
....,,,
for the ones missed
I found this:
http://www.finance-broker.com.au/content/fixed-interest-rate-home-loan-history
has a Graph that goes with it. So I think fixed for 4.99% for 3 years is looking pretty good right now.
http://www.finance-broker.com.au/content/fixed-interest-rate-home-loan-history
has a Graph that goes with it. So I think fixed for 4.99% for 3 years is looking pretty good right now.
You can't determine what's going to happen in this cycle based on information from 1990. I agree 4.99% for 3 years is looking good now but I don't think it will look so good in three months time.
What you believe that the variable rate will be below that or 3 year fixed rates on offer will be less than 4.99%.
I am pretty sure that the variable rate will go below that but not 3 year fixed rates...or only slightly lower.
I don't believe that the rates will saty at these historic lows for a long time and rates will revert back to probably what they are now or the mid 6's
