Interest Rates - Sash's View

[sash]

Yep.....that is why I quiz them about how they work out cost of exiting a fixed loan upfront.

Also wiith more pain...as there is a silver lining via more buying opportunities.

Agree that the next move will not be till Feb/Mar as the CBA rate rise sorted that out for Dec. and the RBA does not meet in Jan unless it is an extra-ordinary or emergency meeting.

Sash - that's a well reasoned post but it misses two things.

1) banks lifting rates ABOVE RBA increases - very likely.

2) banks NOT passing on rate cuts if they come down.

i think Australia is in for a world of pain when it comes to IRs. i don't think we will see 'shy' of 8% - i think we'll see 9.5% SVRs.

the next 3 months will be flatliner IMPO. rates probably won't move until Feb/Mar. I'll hopefully be out of my house by then and have zero debt.

 

[Thrawn]

I had the opposite experience recently when one of my banks' variable rate was higher than the fixed rate I had.

You don't compare against the variable rate. You compare against the fixed rate for the remainder of your loan period.

Eg, if you have 3 years left on your fixed rate then you compare against the current rate for 3 years fixed.

 

[JIT]

You don't compare against the variable rate. You compare against the fixed rate for the remainder of your loan period.

Eg, if you have 3 years left on your fixed rate then you compare against the current rate for 3 years fixed.

Thanks Thrawn, will have a look at this.

 

[Ridin-High]

Just plugged 9.5% I/R into my spread sheets for property holdings and 11.5% on margin loan. I would be getting DP'ed on those rates.

Better start saving HARD

 

[Edmond Dantes]

Just plugged 9.5% I/R into my spread sheets for property holdings and 11.5% on margin loan. I would be getting DP'ed on those rates.

Better start saving HARD

You're brave mate with a margin loan these days (personally any day for my liking). Good luck and I know you'll do well.

 

[wobbycarly]

Just plugged 9.5% I/R into my spread sheets for property holdings and 11.5% on margin loan. I would be getting DP'ed on those rates.

Better start saving HARD

DP'ed? Double-penetrated? Deep-pronged? Deep-'poo-poo'? Sorry, haven't seen that expression before.

 

[eggnog]

mate, i'd be TP'ed at those rates

 

[Ms Jade]

mate, i'd be TP'ed at those rates

Triple penetrated?

 

[Ridin-High]

DP'ed? Double-penetrated? Deep-pronged? Deep-'poo-poo'? Sorry, haven't seen that expression before.

double penetrated.

Lol @ the forum members TP comment

 

[Peter 14.7]

I clearly remember a conversation in 1989 or 90 "I was paying 22.5% and a mate had a friend at the ANZ manager that got him a bargain at 21.75%.
Don't think it can't happen.


But you would know this cos you give lessons in banking

I was fixed at 13.5%, luxury!

Peter

 

[Player]

I was fixed at 13.5%, luxury!

Peter

Nice Peter............ I was also fixed at 14's and 14.5 at the time and my mates told me I was nuts.

I slept at night though

 

[BayView]

Yes...you are correct...any ideas how I move it to there??

I have a tow bar and tow rope.