WBC lifts fixed interest rates

[auror]

Previous rate & comparison rate:

1 year
5.19% pa
5.97% pa*

2 year
5.19% pa
5.90% pa*

3 year
5.39% pa
5.90% pa*

4 year
6.29% pa
6.18% pa*

5 year
6.29% pa
6.21% pa*

7 year
6.99% pa
6.66% pa*

10 year
6.99% pa
6.83% pa*

Current rate (and comparison rate)
1 year
5.39% pa
5.90% pa*

2 year
5.49% pa
5.88% pa*

3 year
5.79% pa
5.94% pa*

4 year
6.39% pa
6.15% pa*

5 year
6.39% pa
6.20% pa*

7 year
6.99% pa
6.62% pa*

10 year
6.99% pa
6.80% pa*

Thanks to JoeExpat who pointed this out in the ING and CBA thread, but I thought it deserved a new one of its own...

 

[Bluegoose]

Bugger!!

That 3 year rate looked really good. Missed the boat I guess.

A saving grace may be that as interest rates go up in a couple of years, the cost of funding will probably come down as the credit crunch eases. Sounds strange but it could happen - wishful thinking?

 

[Rolf Latham]

Everyone needs to assess (for themselves) if the bounce is a bounce off the bottom, or if the underlying swap rates are just in a temporary huff, while the super funds and the like think the economy isnt as stuffed as they first thought.

ta
rolf

 

[auror]

Very true, Rolf. according to this:
http://www.asx.com.au/data/trt/ib_expectation_curve_graph.pdf

the trough of the variable IRs is due in around Sept or Oct. What will fixed rates be at that time? who knows?

 

[danwatto]

So now it's been WBC, CBA, NAB of the top 5.

That leaves ANZ & St George to increase....

However ANZ is already extremely high at 6.84 I don't see that they would even need to increase.

I hope my St George valuation comes in ok, as by the time that is done there won't be much choice left out there!!

My broker said the St George rate lock happens at the time you submit the application, which is pretty awesome. I hope I get this 5.74%

 

[vbplease]

Dan,
Have you looked into St. George's fees? I gave up after reading through about 5pages of different fees.. seems they have a fee for just about everything they can think of.. Are you sure their rate is still good considering?

 

[aw1]

Bugger! I just applied for the 3 year rate yesterday.. looks like I missed out (assuming Westpac's rate lock starts at the time of approval and not application which I suspect is the case).

I might apply with St George so I can grab theirs if it is indeed at the time of application.

 

[Aaron Sice]

very very interesting.

maybe they're trying to artificially sway the market into thinking rates are going up again, get everyone to fix, and then rates fall - thereby increasing their margins to be able to pass on the futurs cuts to customers.

take from the left, give to the right so to speak.

 

[devo76]

My choice has been made. At my current repayment rate my PPOR will be paid off in two years so i will stick variable. When the variable rate starts to move up again the remaining balance should be low enough not to have a great effect on repayments.I was thinking 2 or 3 years before so they would have to move a fair bit and fast to come out behind. Bit of a relief actually.

 

[Rolf Latham]

ST George in our office is known The Fee Fee bank

ta
rolf

 

[aw1]

Bugger! I just applied for the 3 year rate yesterday.. looks like I missed out (assuming Westpac's rate lock starts at the time of approval and not application which I suspect is the case).

I might apply with St George so I can grab theirs if it is indeed at the time of application.

Gah! This doesn't work either! I was just informed by St George that I cannot rate lock for 90 days if I'm refinancing an existing St George loan.

 

[Propertunity]

It may be just a bounce.

But I am still remembering a thread from August 2008
http://www.somersoft.com/forums/showthread.php?t=44716

where Macquarie Bank was offering 1 year fixed @ 9.4% with no fees to fix (but obviously fees to break). Just before all the big rates cuts started coming from the RBA.

Now we have to ask ourselves "would banks be opportunistic?"

 

[Rolf Latham]

AW

WBC rate lock normally at time of app, if the file is loaded on their system you should be ok

ta
rolf

 

[aw1]

AW

WBC rate lock normally at time of app, if the file is loaded on their system you should be ok

ta
rolf

Hi Rolf

I applied online, so hopefully I should be okay then!! If not, I'll give you a call to find me another good deal

Adam

 

[LynnH]

very very interesting.

maybe they're trying to artificially sway the market into thinking rates are going up again, get everyone to fix, and then rates fall - thereby increasing their margins to be able to pass on the futurs cuts to customers.

take from the left, give to the right so to speak.

Methinks you have a devious way of thinking, BC!

That thought had crossed my mind, too .....

Cheers
LynnH

 

[csc]

i think its pretty cunning by the banks to do this...

for sure they will now pass on in full any new rate cuts when the rba decides another drop is warranted and then pump the media circus to say: "look at us, we have done the right thing"

keep in my they still owe the punters almost 1.00% from all their skimming over the past 6-8 mths..

bloody banks...all in bed together

no collusion at all is there??? ha!

 

[BV]

maybe they're trying to artificially sway the market into thinking rates are going up again, get everyone to fix, and then rates fall - thereby increasing their margins to be able to pass on the futurs cuts to customers.
.

BC

Good point, it's probably just another money making exercise for the banks

All they need now is for Today Tonight and Current Affair to broadcast that IR's are going up and people will be queing up to fix their loans.

 

[danwatto]

Dan,
Have you looked into St. George's fees? I gave up after reading through about 5pages of different fees.. seems they have a fee for just about everything they can think of.. Are you sure their rate is still good considering?

Not yet, I was kind of hoping most of the professional packages were similar with the big 5??

I'm currently paying about $400pa for the westpac package, which gives you only one free transaction account.

The St George is meant to have 3 free transaction accounts that can be linked to the offset.

As for other fees, do they still count if you are paying your annual $400 package fee?

I might take a look... however the interest savings should cover it.

 

[Highlygeared]

very very interesting.

maybe they're trying to artificially sway the market into thinking rates are going up again, get everyone to fix, and then rates fall - thereby increasing their margins to be able to pass on the futurs cuts to customers.

take from the left, give to the right so to speak.

Spoke at length to my Bank Mgr this morning, he was of the personal view that this is exactly the motivation. Rumours were abound a couple of weeks ago within his inner circle that FIXED rates would be falling again in June. I've made the incredibly hard decision not to fix.

 

[steveadl]

Spoke at length to my Bank Mgr this morning, he was of the personal view that this is exactly the motivation. Rumours were abound a couple of weeks ago within his inner circle that FIXED rates would be falling again in June. I've made the incredibly hard decision not to fix.

I guess it's then a case of the fixed rates will need to fall back to what they were last week, then some meaningful fall further below that to benefit more than fixing now. That's not something I'm willing to leave to chance.