Rates drop 25bp

[westminster]

Looks like I fixed too soon at 4.99%! Oh well!

Oh well! still a good rate to fix at and play the gamble on.

 

[Jake D]

Looks like I fixed too soon at 4.99%! Oh well!

I'm still a whisker over 5 after the drop.

 

[Rixter]

I fixed at 5.59% but I didnt fix for the rate, rather risk management. As such perception of what the rate does from then on does not change.

 

[Aaron_C]

I'm still a whisker over 5 after the drop.

I was on a 1% discount so I would be paying 4.9% variable now. Not worried about it

 

[ZOMG]

It's already announced that it has, gets passed on tomorrow.

Sweet, just in time for tomorrow's first mortgage repayment!

 

[HotRod]

Sweet, just in time for tomorrow's first mortgage repayment!

Which will be charged at the old rate.

 

[ZOMG]

Which will be charged at the old rate.

Shows you how much I know about this whole property thing at the moment

Edit: Our current home loan variable rate is 5.25% (not sure how much CBA is lowering it by), and I just looked at the fixed rates at 4.89% for 3 years. This sounds like a no-brainer to fix 100% of the loan to save me money, is there something that I'm missing/not knowing about?

 

[The Fence]

Only if you want or need to sell or refinance in that 3yr period, gonna cost you likely more than you may save.

Flexability for rate.

 

[Shahin_Afarin]

Shows you how much I know about this whole property thing at the moment

Edit: Our current home loan variable rate is 5.25% (not sure how much CBA is lowering it by), and I just looked at the fixed rates at 4.89% for 3 years. This sounds like a no-brainer to fix 100% of the loan to save me money, is there something that I'm missing/not knowing about?

Is it for a PPOR or IP? Are you planning to renovate or re-value the property within the next 3 years?

 

[ZOMG]

Is it for a PPOR or IP? Are you planning to renovate or re-value the property within the next 3 years?

It's PPoR, might put in floorboards and would want to revalue to use the increased equity for future IP(s).

 

[Shahin_Afarin]

a) If its a PPOR I would have some component which is variable so excess funds can be parked in the offset. Most lenders do not allow for offsets against fixed loans.

b) What you renovate and your current gives you a crappy valuation and you do a free upfront val with lender B and they give an awesome valuation? You cannot move lenders if you are fixed (other than of course breaking the fixed term and paying break costs).

 

[ZOMG]

Thanks for that, think we'll leave it to variable as I want to revalue it in a year or so and use that equity.

 

[TingTong]

Thanks for that, think we'll leave it to variable as I want to revalue it in a year or so and use that equity.

I think you could still pull out the equity in a different loan but the main disadvantage fixing with CBA is you can't have an offset account.