Interest Rates - where now??

[Spades]

Imo i can't see rates rising in the next 3yrs at least,though i could be wrong.
Either way i've factored in the worst case scenario IF rates do rise.

 

[Nth Brisbanite]

I just fixed a $1.2M loan at 4.67% for 3 years, very attractive rate.

Who was this with?

 

[Spades]

it was AMP

..........

 

[kathryn d]

Rates are on the way up in Canada too.
We have 3 mortgages coming up for renewal in 2014.
Ours are P & I, and we are considering increasing the payments, to knock off more years.

Last year, we knocked off 5 years on our 11 unit apt building, when we kept the payment the same, when interest rates had declined.

I think hard times are coming, and having lived thru mortage interest rates at 13% with only one property, I don't want to go thru that with lots of mortages.

 

[MTR]

Rates are on the way up in Canada too.
We have 3 mortgages coming up for renewal in 2014.
Ours are P & I, and we are considering increasing the payments, to knock off more years.

Last year, we knocked off 5 years on our 11 unit apt building, when we kept the payment the same, when interest rates had declined.

I think hard times are coming, and having lived thru mortage interest rates at 13% with only one property, I don't want to go thru that with lots of mortages.

Hi K
Try living through 18% IR, yes, that's right as high as this in Oz, a while ago now.

 

[kathryn d]

Hi K
Try living through 18% IR, yes, that's right as high as this in Oz, a while ago now.

Actually I did too.
We didn't have a mortgage at the time, because we built our house as we went, then took a personal loan to finish it...at 21%
Every time the rates came down we refinanced it...

We both still had jobs, but friends and family of ours came very close to losing their homes.

Interest rates are so low now..I'm honestly surprised it has lasted as long, as it has.

 

[jim1964]

Try living through 18%

I was there in 1989.If this happened again in Australia,i hate to think...........

 

[INVSTOR]

What bank did u fix it for at 4.69% - ME? as per a few posts back?

I just settled on my loan with CBA and want a rate match!

ME Bank - fixed 3 yr 4.69

 

[RetireRich101]

I just fixed a $1.2M loan at 4.67% for 3 years, very attractive rate.

is it because the size of your loan > $1M that you're able to negotiate the fixed 3 yr to 4.67%, as I was only able to fix what was advertised in their website, ie 3yrs fixed at 4.79% for approx $350k loan?

can other Broker comment if you're able to negotiate fixed with AMP on fixed?

 

[Colin Rice]

is it because the size of your loan > $1M that you're able to negotiate the fixed 3 yr to 4.67%, as I was only able to fix what was advertised in their website, ie 3yrs fixed at 4.79% for approx $350k loan?

can other Broker comment if you're able to negotiate fixed with AMP on fixed?

Loan size does open up a lender to negotiation especially $1M+.

A loan size of $350k on fixed would not be negotiable with most banks especially AMP.

 

[MTR]

Talk of Interest Rate Rises

Watching the news tonight, stating that next IR will remain as is, however expect IR rises next year, I don't think I saw this coming

 

[INVSTOR]

Watching the news tonight, stating that next IR will remain as is, however expect IR rises next year, I don't think I saw this coming

Telethon had a record year of donations, then a couple of days later I saw another fundraising event reach a record high. (can't remember where or what but think it was eastern states). Economy must be Ok IMO.

 

[D.T.]

Telethon had a record year of donations, then a couple of days later I saw another fundraising event reach a record high. (can't remember where or what but think it was eastern states). Economy must be Ok IMO.

Telethon has broken a record every year for about the last 10 years

 

[Ausprop]

Watching the news tonight, stating that next IR will remain as is, however expect IR rises next year, I don't think I saw this coming

who was making this call? unless something has just changed neither nab nor westpac are seeing rises till 2015

 

[jonmardell]

is it because the size of your loan > $1M that you're able to negotiate the fixed 3 yr to 4.67%, as I was only able to fix what was advertised in their website, ie 3yrs fixed at 4.79% for approx $350k loan?

can other Broker comment if you're able to negotiate fixed with AMP on fixed?

AMP can be difficult to negotiate rates with but not impossible for the larger loan sizes.

 

[MTR]

who was making this call? unless something has just changed neither nab nor westpac are seeing rises till 2015

Because a number of larger banks have lifted their fixed rates, a sign that things may be changing

http://www.smh.com.au/business/bank...me-loan-rates-on-the-rise-20131031-2wjl8.html

 

[INVSTOR]

Telethon has broken a record every year for about the last 10 years

I didn't realise that! That's good they can achieve that throughout GFC, etc.

 

[rabidz]

Because a number of larger banks have lifted their fixed rates, a sign that things may be changing

http://www.smh.com.au/business/bank...me-loan-rates-on-the-rise-20131031-2wjl8.html

Wondering how the bank decide its own fixed rate, especially for long term.
Is that only based on future economy, bond market or anything else?

 

[Aaron_C]

Wondering how the bank decide its own fixed rate, especially for long term.
Is that only based on future economy, bond market or anything else?

Based on the yield curve and their own internal risk metrics.

 

[Angel]

First question....What inflation?

Question two.......The article is talking about mid-term fixed rates, not any of the other kinds. It states short-term rates are still going down, both in the text and on the graph.