St George Fixed - Any Discount?
- Thread starter Ms Jade
- Start date
I'd question whether it is worth fixing at this stage in the cycle eg current SGB 3 year fixed with 0.15% discount is 7.54%, variable portfolio 6.78% with 0.8% discount is 5.98%. So your difference is 1.5%. Which means that for the fixing to break even you need to be anticipating variable rates will rise higher than 1.5% over the course of the loan. you would probably need rates to rise say 2% over the next 9 months to come out in front. For example I fixed some at 6.34% last year and kept the balance variable. After 6 months i am still behind by fixing rather than going variable.
If you need to fix so you can sleep at night that's fine, but I am not sure now is the best time in the interest rate cycle to fix.
If you need to fix so you can sleep at night that's fine, but I am not sure now is the best time in the interest rate cycle to fix.
Thanks jrc & Ms Jade for this post.
I can't recall when I asked them exactly probably not long after they introduced the packaging product. Perhaps before they had discounted fixed rate, or the person on the phone did not know enough?
Anyway, I agree with jrc that it is a questionable time to start fixing now. It was more an attractive option 6 months ago (you are luckly).
I will ring them and ask anyway and will make a decision from there.
I can't recall when I asked them exactly probably not long after they introduced the packaging product. Perhaps before they had discounted fixed rate, or the person on the phone did not know enough?
Anyway, I agree with jrc that it is a questionable time to start fixing now. It was more an attractive option 6 months ago (you are luckly).
I will ring them and ask anyway and will make a decision from there.
The website still lists 0.15% off for standard or portfolio loan fixed rates?
http://www.stgeorge.com.au/loans/home-loans/invest-in-property/advantage-package.asp
http://www.stgeorge.com.au/loans/home-loans/invest-in-property/advantage-package.asp
0.15% is standard if the fixed rate loan is part of the package.
In my experience, I have been able to secure a higher discoutn on the variable loans, but the fixed rates do not move above 0.15% discount.
I am not saying it is not possible, I just havent seen it.
In my experience, I have been able to secure a higher discoutn on the variable loans, but the fixed rates do not move above 0.15% discount.
I am not saying it is not possible, I just havent seen it.
