If bank offered you 4.99% fixed for 3 years today, would you do it?

If you were offered a 3 year fixed rate of 4.99%, would you do it?

  • Yes

    Votes: 53 43.4%

  • No

    Votes: 69 56.6%
  • Total voters
    122
  • Poll closed .
hi crc_error
I think you will find that us rates as a norm are under 5%
but there are so many funders that the rates are all over the place.
the best rate is libor and then look at the reserve of the country.
but the us rates are very selective so they are not to a bench mark rate.
but as a norm they are around the 4% mark but have fallen and are lower at the moment.
the bench mark is 4% us
4.5 euro
2.45 singapore
2 japan and asia
1 sovereign
and 0 arab/iran
and any where in between
not sure if this helps as it doesn't help most other borrowers or funders
but these are the very rough numbers to give you an idea.
and who said finance was easy
 
so many countries, with such low rates, yet we were pushing 8%+ only a few months ago.. what a joke..

And the RBA excuse for this action? Imported inflation which had nothing to do with australian wage inflation, hence would not have been controlled by rate increases.
 
I am also looking at refinancing.

With the standard variable rate at 6% with a pro pack and Westpac 3 year fixed @ 4.99% , even with January/Feb 09 rate cut we may get a 1% cut taking the standard variable to 5% if we are lucky.

Would like to know:

- In the last 20 years have 3 years fixed rate been lower than 4.99%?
- Has the standard variable rate with any type of pro pack been lower than 3.75% , not including any honeymoon or intro products?
 
redwing said:
Why you say dat?
Click to expand...

Redwing

I simply say dat because the banks and the market place is expecting the reserve to drop rates next year, so the act of them actually doing that isn't going to have a big impact on fixed rates. In my opinion, the banks have pretty much priced in next years cuts in their fixed rates already (or will over the next few weeks), so I can't see any good reason for them to drop substantially. The reserve would have to surprise on the downside with rates for the fixed rates to be reduced so heavily.

Apart from Westpac's current 3 year rate, I think fixed rates may drop half a percent from where they are, putting most 3 year rates in the top half of the 5-6 range, and 5 year rates pretty much at 6. All this talk of 5 year rates at 5% is rubbish. I will be fixing 5 years at anything under 6.

Hoewever I do like the idea of averaging into the market like other posters have talked about. I will probably fix a third of my loans in February, then another third about April, then the rest if I can around June, depending of course on any up to date information that is available at that time.

The reason I will wait until February is twofold: Firstly variable rates are low, so I should fix as late as possible, so I get the benefit extended out into the future for as long as possible. Secondly, I think the banks are reviewing their pricing right now due to Westpac's move and over the next 4-6 weeks these prices will become available.

Noel
 
Just had word from Firstmac today that they may well have a sub 5% 3 year fixed in the wings. May well be like their signature 5.99% product however and only be available to 80%LVRs and below.
 
Yes I would but I was told by someone that if we went with the fixed option then I would lose the benefit of 100% repayment offset on the I.O loan. Is this true?
 
tigerGT said:
Yes I would but I was told by someone that if we went with the fixed option then I would lose the benefit of 100% repayment offset on the I.O loan. Is this true?
Click to expand...

Different banks will have different products, so will vary from bank to bank. Although this is usually the exception from what I have seen.
 
yeh thats what I'm looking for.. a low 5 or 7 year rate..

but I would say the trigger should be once rates turn around and they increase them will be the time to fix, indicating a turn around.
 
allblack said:
And the chance to lock in at a lower rate in April!!.
Click to expand...


Do you really think that you will get a better fixed rate when rates have bottomed out...thats when fixed rates go up.

And no i haven't looked myself out, as I have other loans, its a matter of balance and management.

I will honestly doubt that we will get anything signifcantly better than the 4.99% fixed for 3 years, but hey if i'm wrong i'm not to fussed.
 
you generally dont fix to save money.. most of the time the bank will get it right.. its like thinking you can outsmart the casino..

The banks will set fixed rates above what they think the average variable rate will be for that period.
 
Its crazy to think that you can just fix rates when they bottomed out and that you will get the best rate. It is best to fix rates a few months before they bottom out. Maybe stagger the transition to fixed over a few months. I plan to fix some after possible Jan rate cut and then in March. They say rates to bottom out in June so based on that I think im making the right decisions.
 
tigerGT said:
Its crazy to think that you can just fix rates when they bottomed out and that you will get the best rate. It is best to fix rates a few months before they bottom out. Maybe stagger the transition to fixed over a few months. I plan to fix some after possible Jan rate cut and then in March. They say rates to bottom out in June so based on that I think im making the right decisions.
Click to expand...

Thats why I have fixed one of my loans, i truely believe that the FIXED 3 year rates will not get to much if at all lower. The fact Westpac withdrew the rate after 2 weeks says something.

Regardless of fixing that loan I still have 2 others on variable so i will be able to enjoy the benefits of falling rates.
 
Looking at the fixed rate decision...if I was to fix a couple of loans...and then in a year or so sought to re-finance against the properties, to release some equity, does this 'top-up' amount just get charged at the particular variable amount for that bank? Eg with ANZ, my current variable is 6.21%. If I was to fix at a 3 year rate, whatever that may be, and then I topped up say 40k...I assume this additional 40k would be at the 6.21% basic rate, or whatever the current rate is? Are there any issues about topping up with a small amount, eg less than 150k loan etc.../ missing out on 0.7% discount etc in pro-packs...?
 
Perth Investor said:
Redwing

I simply say dat because the banks and the market place is expecting the reserve to drop rates next year, so the act of them actually doing that isn't going to have a big impact on fixed rates. In my opinion, the banks have pretty much priced in next years cuts in their fixed rates already (or will over the next few weeks), so I can't see any good reason for them to drop substantially. The reserve would have to surprise on the downside with rates for the fixed rates to be reduced so heavily.

Apart from Westpac's current 3 year rate, I think fixed rates may drop half a percent from where they are, putting most 3 year rates in the top half of the 5-6 range, and 5 year rates pretty much at 6. All this talk of 5 year rates at 5% is rubbish. I will be fixing 5 years at anything under 6.

Hoewever I do like the idea of averaging into the market like other posters have talked about. I will probably fix a third of my loans in February, then another third about April, then the rest if I can around June, depending of course on any up to date information that is available at that time.

The reason I will wait until February is twofold: Firstly variable rates are low, so I should fix as late as possible, so I get the benefit extended out into the future for as long as possible. Secondly, I think the banks are reviewing their pricing right now due to Westpac's move and over the next 4-6 weeks these prices will become available.

Noel
Click to expand...

Thanks Noel,

We are also waiting until February to review our situation, we have another FI-IO Loan coming due early 2009 as well, not sure what the future holds, but we are looking at the 5 yr rates
 
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