Jumping from Variable to Fixed to Variable etc.

[morg]

With the latest round of fixed rate cuts, I've once again been tempted to lock in for 3 years.
Currently have variable loans with STG for $750k and ANZ for $650k. Both IO.
Reasonably happy with them, but always could be better.
As it stands, I'm getting a good discount off the variable rate on both.

Now, if I go ahead and change my loans, all will be good for 3 years (fixed term). My query is, what happens after that ?

With STG, I then either roll over onto another fixed term or revert back to variable, however, I lose my current variable rate discount.
This then makes their product unnattractive.
I know I shoudn't be, but I'm "assuming" the same will occur with ANZ.

So, my question is, how do all my fellow forumites go about juggling there fixed/variable finances ?
Is it a case of a complete refinance every 3 years, with all the credit checks and puss and pain that goes with that ?
Or is it just an idle threat from the banks that they will withdraw your current rate discount if/when you revert back to variable?

 

[tobe]

fixed OO debt, and about a 3rd of the investment debt over the past 12 months.

If I had the disipline to follow my convictions and had I wanted to 'beat the banks', I would have waited for the fixed rates to make their first move up before fixing.

As it is I have a happy wife, and therefore, a happy life.

 

[Peter_Tersteeg]

I keep my original loan offer documents (or the amendment documents) and when the fixed period expires, I expect they'll revert to what's promised in that documentation. If it doesn't I've got what they promised in writing.

 

[jonmardell]

with St george they dont put the special negotiated variable rate discount in the loan offer. Either get the special discount in writing from the pricing team and provide that to them when you come off fixed or keep a variable rate split with the current discount and that would be applied to the rest of the loans once they come off fixed.

With the latest round of fixed rate cuts, I've once again been tempted to lock in for 3 years.
Currently have variable loans with STG for $750k and ANZ for $650k. Both IO.
Reasonably happy with them, but always could be better.
As it stands, I'm getting a good discount off the variable rate on both.

Now, if I go ahead and change my loans, all will be good for 3 years (fixed term). My query is, what happens after that ?

With STG, I then either roll over onto another fixed term or revert back to variable, however, I lose my current variable rate discount.
This then makes their product unnattractive.
I know I shoudn't be, but I'm "assuming" the same will occur with ANZ.

So, my question is, how do all my fellow forumites go about juggling there fixed/variable finances ?
Is it a case of a complete refinance every 3 years, with all the credit checks and puss and pain that goes with that ?
Or is it just an idle threat from the banks that they will withdraw your current rate discount if/when you revert back to variable?

 

[jonmardell]

one more thing, how long do you have left on your interest only terms?

With the latest round of fixed rate cuts, I've once again been tempted to lock in for 3 years.
Currently have variable loans with STG for $750k and ANZ for $650k. Both IO.
Reasonably happy with them, but always could be better.
As it stands, I'm getting a good discount off the variable rate on both.

Now, if I go ahead and change my loans, all will be good for 3 years (fixed term). My query is, what happens after that ?

With STG, I then either roll over onto another fixed term or revert back to variable, however, I lose my current variable rate discount.
This then makes their product unnattractive.
I know I shoudn't be, but I'm "assuming" the same will occur with ANZ.

So, my question is, how do all my fellow forumites go about juggling there fixed/variable finances ?
Is it a case of a complete refinance every 3 years, with all the credit checks and puss and pain that goes with that ?
Or is it just an idle threat from the banks that they will withdraw your current rate discount if/when you revert back to variable?

 

[Rolf Latham]

ANZ IO interest only, or variable or fixed conversion can be tough

ta

rolf

 

[morg]

Thanks Jon.
Good idea, keeping some on variable.
STG is LOC, so IO for life of loan.
ANZ I've still got 9 years IO, as it was only redone last year.

 

[jonmardell]

Thanks Jon.
Good idea, keeping some on variable.
STG is LOC, so IO for life of loan.
ANZ I've still got 9 years IO, as it was only redone last year.

ok with that in mind, st george is easy to switch with one phone call. ANZ is almost doing a new application!

 

[MC1]

If your broker has a relationship with an ANZ branch they can convert your loan to fixed without any issues

 

[Corey Batt]

If your broker has a relationship with an ANZ branch they can convert your loan to fixed without any issues

What MC1 said.