RBA to cut rates by 100bp in December

[landlubber]

I'd prefer these rate decreases were not required.

Wealth or no wealth , people still tend to like to have a "roof over their heads". We have a chronic housing shortage, high immigration and (relatively) high employment with reasonable incomes.

Hence ... I'll take all the IR cuts I can get thanks Joe. Bring 'em on ! IR futures are forecasting a target cash rate of 2.75% which will do nicely.
LL

 

[Tash_85]

Save a penny lose a pound... the conditions that have led to these interest rate decreases have destroyed peoples wealth far more than they will save in interest payments.
I'd prefer these rate decreases were not required.

joe- how nice it would be to live in switzerland

 

[landlubber]

3 year fixed at 4.99% Westpac

I've read in another thread that Westpac as of today is offering a 3 year fixed loan @ 4.99%

This seems to be true. It was advertised in The Age Friday 5 Dec. Must be some pretty hefty fees however as comparison rate is still over 7%. All that glitters is not gold huh ....
LL

 

[lizzie]

someone covered this in another post - apparently the comparison rate is calculated over a 30yr loan, so the calculation is taken from 4.99% for the first 3 years and then standard variable for the next 27 ... which works out around 7.71% (at current rates) for the next 30 years.

one of the brokers on ss also said that they take very little notice of the comparison rates because of the way they are calculated.

 

[landlubber]

Thanks Lizzie ... Then the advert. was on page 9 of Friday's Age sure enough. 4.99% fixed for three years. Does this mean Westpac is forecasting a dip in IRs then rising at the three year mark ? My cloudy and cracked xtal ball would probably sort of agree. Rates will fall further in 2009 then we'll either be out of this mess in 3 years or all on the soup queue.
LL

 

[kum yin lau]

Hi, the Westpac thing was discussed in Finance. I got all excited because I've loans with Westpac NZ.

I checked & as of today, best is 2 year fixed at 6.8%. Next tier is 7.2% 3year & so on. Variable is 8.6.

I was paying 10.45 variable. So you can imagine the beatific smile I beam to everyone.

Plus, the real beauty is the serviceability is now so so much more. Plus, when interest rates go up, I usually pay more to bring the loan total down. So there's a pool of equity there as well. Just pinched myself real hard to check that I'm not dreaming.

Enjoy the weekend, I surely aim to.

KY

 

[DCI]

This may be of help to some...

http://www.canstar.com.au/interest-rate-comparison/compare-home-loan-rates.html