rba cuts 0.25

1. Poor servicing
2. Max cash is $100k ( without doc proof)


So good fix rate ...but as a lender not the best for aggressive investors ( which i think has been covered over 100 times in this forum lol)
Decent loan if you can service it + dont need equity within that 3 years.
So your low CG IP but good RY etc...

and of course the non aggressive investors like PPOR and 1-2 Ip only etc...
 
The reasons my colleagues have mentioned above.

You get locked in with a cheap fixed rate. A bit later you've got some equity but BWs limited serviceability means they won't fund the next purchase or even an equity release on the existing property.

You have to break the fixed rate to access your equity.

Even if you don't need to do this, BW have a long history of offering a cheap product to get market share. After about 1-2 years they replace it with the next great deal and the cost of the older product has a tenancy to increase. You can switch (they charge fees for this unlike many lenders) but they rely on your ignorance and apathy to make a significant sum of money.

The current product is the "Complete Variable Home Loan".

Premium Home Loan, Double Deal Home Loan, Rate Cutter Home Loan, Regular Saver Home Loan, Mortgage Shredder. All of these past products had market leading rates when they were introduced. Today some of them have rates as high as 5.9%; over 1% higher than the current BankWest offering.

Their policies mean they don't suit investors very well over the long term. Their market behaviour suggests everyone else would best avoid them as well.

I don't recommend lenders with cheap rates. I recommend lenders that have a track record of being consistently competitive.
 
I'm thinking about fixing my ip loan (the ip that used to be my ppor a few years ago). The only thing is, I may move back into my old ppor in 2, or 3 years time or maybe not for quite some time if I'm enjoying living where I am.

I'm not sure if there would be break costs/costs associated if I switched it back from fixed to SV linked with offset when/if I move back in. Might give my mb a call! I think a 5 year fixed on it sounds like a good idea. Loan is a tiny $175 k.
 
I'm thinking about fixing my ip loan (the ip that used to be my ppor a few years ago). The only thing is, I may move back into my old ppor in 2, or 3 years time or maybe not for quite some time if I'm enjoying living where I am.

I'm not sure if there would be break costs/costs associated if I switched it back from fixed to SV linked with offset when/if I move back in. Might give my mb a call! I think a 5 year fixed on it sounds like a good idea. Loan is a tiny $175 k.

Your lack of definitive planning make a decision to fix for 5 years a big mistake.

pinkboy
 
Heard a "Commentator" yesterday say they'll need to do a full 1%. 3 more cuts to come - yippee but we'll see. I wonder if the banks would pass all of that on!
 
Your lack of definitive planning make a decision to fix for 5 years a big mistake.

pinkboy

Yeah could be! as I honestly have no idea just how long I plan to be living where I am. It's kinda hard to plan for the next 1-5 years as I'm not sure what I'm wanting! Maybe it's best to stay SV. I also wouldn't want to be locked in if I'm wanting to extract equit to invest in a few years time if/when I sell the place I just moved into today. Lol. I'll be playing things by ear the next few years. :D. Thanks for your bluntness haha. Appreciated!
 
The RBA's GDP growth rate forecast has now been lowered to 2.25%-3.25%.

These growth forecasts are significant because the revised forecasts incorporate: (1) the expected impact of the 0.25% rate cut which was announced on February 3 and, critically important, (2) ?the assumption that the cash rate moves broadly in line with market pricing at the time of writing?. Market pricing currently envisages a further full 0.25% cut plus another possible 10bps.

In short, the RBA is expecting that growth in 2015 will still be below trend despite the current rate cut and the markets? expected further rate cuts.
 
Newcastle Permanent have just launched 3 years fixed rate @ 3.99%
$0 establishment costs. $0 ongoing. 95% LVR. 25K extra repayments per annum. Their 4 and 5 year rates are at 4.39% but for sub 80% they will do 10 bps less for those, so 4.29% each.

I wonder whether the broader market will start dropping fixed rates shortly? Thoughts?
 
TMBank has special offer of fixed for 3 @ 4.09 either PI or IO no set up fees with offset and redraw if you want it. Other rates remain above 4.5 - which I find interesting.
 
The RBA has a serious problem on its hands if rates get below 4% and they dont take a harder interventionist approach.... dwelling prices are going to reach levels where there is a real house of cards being built. As the owner of many many properties that makes me happy - but as the owner of many many properties it also makes me frightened that irrational behaviour may create a catastrophe
 
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Crystal ball stuff but I reckon all fixed rates will have a 3 in front of them in approx 5-6 months so I can't believe people consider fixing in this market.

I also think Euro is on the money and as such I think lenders will start tightening their lending policies. Im sure there will be other measures encouraged by externals forces such as APRA.
 
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