Is now the time to fix?

[Perth Investor]

Oh and like I said, I believe in variable rates and I'll take my chances, but if my debt was twice what it actually is, I would look seriously at 6.75, and wouldn't complain too much if rates came down and I was 1% above everyone else.

To my mind anything under 7 is free money, especially as we know inflation will be at 3-3.5 pretty consistently over the longer term, that makes a cost of 3.5%.

Fixing at 6.75 and regretting it is a lot different from fixing at 8.5 and regretting it, as a lot of people found out.

 

[James Sampson]

the best time to fix has come and gone. There was only a small window of oppurtunity. You would only fix now if you think rates will get back to 9%-10%. And there is a very good chance we could see that scenario in 2-3 years due to excessive credit.

The other scenario is a US double dipp recession or the US defaulting on their loans. If that happens we can expect our interest rates to follow the USA and get to historic lows.

For me i have 3 fixed loans in the md 5's and 2 variable loans, and they will stay that way until the issues in the economy have been addressed.

 

[bene313]

Every month Kevin and his minions hold a protest at the reserve bank offices around the country, and they have been successful in the last couple of months keeping the RBA in line forcing them not to increase their rates.

Really? Their protests acutally have bearing on the RBA decisions? Not so sure about that. Although maybe the protestors claimed responsibility for influencing RBA decisions.

I think he's right and interest rates are way too high. I mean, Melbourne property prices only went up 20%+ last year, rates should be down at 4% retail to promote investment. If house prices were to double over the next couple of years, then everyone would be richer, we'd all have more money, could spend more at the shops giving more people jobs etc.

In fact the whole country could retire in 5 years if we keep rates low enough. I can't believe nobody else can see this. Then we could import all the unemployed from the States and northern Europe and give them jobs, and solve all their problems as well. There's a lot to be said for low interest rates.

PI are you serious? Not everyone gets rich from housing prices doubling and rates staying low - it really doesn't work like that. It is certainly NOT a fact that the whole country would retire in 5 years with low rates. There is a reason we have monetary policy. Maybe have a read on how it works:

http://en.wikipedia.org/wiki/Monetary_policy

 

[peaches]

Today's Business Spectator news states " HSBC as chief economist for Australia and New Zealand, former senior Reserve Bank economist Paul Bloxham has dropped a bombshell, predicting the RBA will raise official interest rates by 125 basis points by the end of next year. "

This guy was with RBA for 12 years and the article goes on " RBA has only one crude lever to pull, monetary policy. Bloxham, fresh from the inner sanctums of the bank, appears absolutely certain it is going to give it a good yank."

Makes 3 years at 6.99% sound appealing to me.

 

[Perth Investor]

Really? Their protests acutally have bearing on the RBA decisions? Not so sure about that. Although maybe the protestors claimed responsibility for influencing RBA decisions.



PI are you serious? Not everyone gets rich from housing prices doubling and rates staying low - it really doesn't work like that. It is certainly NOT a fact that the whole country would retire in 5 years with low rates. There is a reason we have monetary policy. Maybe have a read on how it works:

http://en.wikipedia.org/wiki/Monetary_policy

ummmmm no, I wasn't serious. Not a big Kevin fan either. Big fan of monetary policy. Might need to work on my sarcastic voice. Pretty sure the protests are the biggest joke of the year...

 

[Qlds007]

Yes i had to print a retraction on a comment i had made on a particular company offering rebated commissions.

Certainly i could have fought it and could easily afford to drag it out for years but have more to do with my time and effort that spend in my lawyers office.

More a matter of Buyer beware and if after you explain things to clients over and over again and they still want to go with a particular Club or organisation then get in with life.

it is like the Nigerian Scam letters you can warn people that it is a scam but still they believe it is true.

 

[WinstonWolfe]

Yes i had to print a retraction on a comment i had made on a particular company offering rebated commissions.

Was talking about such an operation yesterday.

http://www.accc.gov.au/content/index.phtml/itemId/918507
http://www.brokernews.com.au/people/wayne-ormond/1328
http://wotnews.com.au/news/Wayne_Ormond/

Despite his 3 years training for the priesthood, he apparently didn't mind lying, according to the ACCC.

 

[tkhn02]

I'm with NAB Homeside and I was going the switch part of my loan today from Variable to Fixed Rate (3 Years) when I checked the rate yesterday:

- 1 Years: 6.84%
- 2 Years: 7.09%
- 3 Years: 6.95%

However, when I called back today and the rate has already been changed!

- 1 Years: 6.94%
- 2 Years: 7.19%
- 3 Years: 7.20%

Not happy!

 

[oracle]

I'm with NAB Homeside and I was going the switch part of my loan today from Variable to Fixed Rate (3 Years) when I checked the rate yesterday:

- 1 Years: 6.84%
- 2 Years: 7.09%
- 3 Years: 6.95%

However, when I called back today and the rate has already been changed!

- 1 Years: 6.94%
- 2 Years: 7.19%
- 3 Years: 7.20%

Not happy!

Just looked at their website now (11:28am) and it still says with package you can get 3 years at 6.95% fixed.

Link to the page here

If it's on their website I am sure you can force them to give you that rate or else tell them you will complain to the ombudsman.

Cheers,
Oracle.

 

[tkhn02]

Thanks Oracle. I have checked and they have updated their other website here: https://www.nabbroker.com.au/HSL/PUBLIC/channel_04/Mortgages - Homeside/Rates.asp

 

[komstak]

Westpac has already increased their fixed rate:


1 yr 7.19%
2 yr 7.44%
3 yr 7.49%
4 yr 7.79%
5 yr 7.89%
7 yr 8.29%
10 yr 8.29%

 

[redwing]

Westpac has already increased their fixed rate:


1 yr 7.19%
2 yr 7.44%
3 yr 7.49%
4 yr 7.79%
5 yr 7.89%
7 yr 8.29%
10 yr 8.29%

Others to follow suit?

 

[Perth Investor]

Homeside and St George also moved late last week.

I sent a fax off yesterday for some of my lending at AMP to get fixed at 6.99 for 3. I normally don't get spooked by rates and stay variable, but when Glenn Stevens says we are heading towards the mother of all booms then I start to take some notice...

 

[redwing]

RAMS moved up to 7.29% FI for 3yrs also

Interest rate news link from Michael W

 

[Marty McDonald]

Still 6.99% for 3 years with AMP...good value?

Marty McDonald
Mortgage Experts
mortgageexpertsonline.com.au

 

[Sunfish]

Still 6.99% for 3 years with AMP...good value?

Marty McDonald
Mortgage Experts
mortgageexpertsonline.com.au

That's the deal my MB recommended to me but it needed a high LVR though, didn't it?

 

[Marty McDonald]

Hi Sunfish,

I havent seen any LVR restrictions with it. Jump on it if you are intersted as it won't hang around.

Marty McDonald
www.mortgageexpertsonline.com.au

 

[Ms Jade]

Still 6.99% for 3 years with AMP...good value?

Great value IMO! Discount variables are less than 2 rises away already - and that's if the banks add no extra (which seems pretty unlikely given the current crowing). I reckon the top of the cycle is likely to be significantly above this.

 

[peaches]

If your application is anything but plain vanilla get your MB to run the scenario past AMP credit before submitting - they are being very pedantic on policy at the moment

 

[kaiseriqbal]

hi,

wouldn't the CUA 3 year fixed loan be a better product than the AMP one?

Interest rate is 6.75% and comes with a 100% offset account, which is a rare thing for fixed loans