Westpac 3 Year Fixed
- Thread starter Fundamental
- Start date
Tis true... (less the 0.20 package discount)
http://www.westpac.com.au/internet/publish.nsf/Content/PBHLRF+Current+Interest+Rates
Fixed Rate Investment Property Loan - Low Doc
1 year 5.99% pa
2 year 5.79% pa
3 year 5.19% pa
4 year 6.49% pa
5 year 6.49% pa
http://www.westpac.com.au/internet/publish.nsf/Content/PBHLRF+Current+Interest+Rates
Fixed Rate Investment Property Loan - Low Doc
1 year 5.99% pa
2 year 5.79% pa
3 year 5.19% pa
4 year 6.49% pa
5 year 6.49% pa
I stand corrected, really bring it on!!!
Yes but its only fixed for three years.
Like every decision there are postive and negatives.
Personally i think if you are going to fix, then go a minimum 5yrs and preferably 10, otherwise stay variable.
Taking out a shorter length fixed rate can give a false sense of security.
Under one scenario (and its just to make a point, i have no idea as to its accuracy):
2008 RBA interest rates 6.5%
2009 RBA interest rates 4.5%
2010 RBA interest rates 4.5%
2011 RBA interest rates 6.5%
2012 RBA interest rates 7.5%
2013 RBA interest rates 8.5%
You could see yourself comming out of the fixed period into significantly higher and trending higher interest rates.
Now maybe this will happen and maybe it wont, i have no idea.
But the purpose of fixed rates should be to act as an insurance policy, not to speculate on the movements of interest rates.
Like every decision there are postive and negatives.
Personally i think if you are going to fix, then go a minimum 5yrs and preferably 10, otherwise stay variable.
Taking out a shorter length fixed rate can give a false sense of security.
Under one scenario (and its just to make a point, i have no idea as to its accuracy):
2008 RBA interest rates 6.5%
2009 RBA interest rates 4.5%
2010 RBA interest rates 4.5%
2011 RBA interest rates 6.5%
2012 RBA interest rates 7.5%
2013 RBA interest rates 8.5%
You could see yourself comming out of the fixed period into significantly higher and trending higher interest rates.
Now maybe this will happen and maybe it wont, i have no idea.
But the purpose of fixed rates should be to act as an insurance policy, not to speculate on the movements of interest rates.
Effective from today Westpac 3 Year fixed rate is 5.19%. With their PAP package discount it is 4.99%.
that was just me - i've been shopping too, and annoying r/est agents - but didn't find anything i wanted ...
but i am wanting to fix for 5 years because the interest rate cycles in the recent past (last 25 years) appear to be around the 5 year mark (bottom to bottom) and i don't want to get caught coming out of a cycle at the peak.
but shiite ... just worked out that my $3mil portfolio would be cash flow positive at 4.99% - by about $10,000/yr not including depreciation and tax.
what to do?
ring broker - have long talk - think about what properties we want to hold and for how long. if there are some we want to sell in around 3 years time then we might fix those at that rate and hold out for lower 5 yr rates for the rest ...
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I'll just say one thing.
Remember when HSBC brought out their awesome fixed rate a few months ago?
Then we saw some 2 year fixed rates at 5.5%?
Now we have a 3 year at 4.99%.
All I'm saying is that perhaps good things come to those who wait...
I'm personally hanging out for a killer 5 year fixed offer.
Remember when HSBC brought out their awesome fixed rate a few months ago?
Then we saw some 2 year fixed rates at 5.5%?
Now we have a 3 year at 4.99%.
All I'm saying is that perhaps good things come to those who wait...
I'm personally hanging out for a killer 5 year fixed offer.
OK,
Not to be a downer or anything, but 4.99% isn't that special...
I'm on the WBC Pro Pack, and following the latest 80bp variable rate cut I'm now at 6.11%. So, 1.1% worse than this fixed rate. BUT, in Feb the RBA looks set to go another 75bp, and WBC were 20bp behind the other majors in passing on the most recent 1% cut. So, theoretically, they could move another 95bp by Feb to fall in line. The cynic in me thinks that maybe they didn't move the full 100bp like some of the majors so that they could entice more of their existing lending base onto their good short dated fixed rates. If they closed the gap too much then the desire to move to fixed would be reduced.
If they do move on the full 95bp reductions outstanding then this would bring their variable rate to 5.16% odd in just a couple of months time!
I'm happy to wait and ride the interest rate roller coaster down. I'll be looking at their 5 and 7 year fixed rates around March next year and trying to fix to 2015 if I can.
Cheers,
Michael
Not to be a downer or anything, but 4.99% isn't that special...
I'm on the WBC Pro Pack, and following the latest 80bp variable rate cut I'm now at 6.11%. So, 1.1% worse than this fixed rate. BUT, in Feb the RBA looks set to go another 75bp, and WBC were 20bp behind the other majors in passing on the most recent 1% cut. So, theoretically, they could move another 95bp by Feb to fall in line. The cynic in me thinks that maybe they didn't move the full 100bp like some of the majors so that they could entice more of their existing lending base onto their good short dated fixed rates. If they closed the gap too much then the desire to move to fixed would be reduced.
If they do move on the full 95bp reductions outstanding then this would bring their variable rate to 5.16% odd in just a couple of months time!
I'm happy to wait and ride the interest rate roller coaster down. I'll be looking at their 5 and 7 year fixed rates around March next year and trying to fix to 2015 if I can.
Cheers,
Michael
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We are currently with the NAB and they have been annoying me over the last few months, we have low LVR somewhere between 40-60% deopending on whose valuation you take.
Looking at fixing one of our 3 loans, and purchasing a new property for me to live in fixed.
Might jump ship to Westpac with one 1 of my places and use them for the 2nd one i'm looking at getting.
Or even better NAB might reduce their fixed rates.
Looking at fixing one of our 3 loans, and purchasing a new property for me to live in fixed.
Might jump ship to Westpac with one 1 of my places and use them for the 2nd one i'm looking at getting.
Or even better NAB might reduce their fixed rates.
michael - you're making my brain hurt!
anyhow, we are currently with stg but notice that their rates haven't dropped in line with westpac. i wonder if that is going to happen because then we wouldn't need to refinance elsewhere for a better deal.
currently loan apps with cba, because their rates were much sweeter last month, but now they are looking decidedly high in comparison to all of westpac's (3, 5 and 10yr).
anyhow, we are currently with stg but notice that their rates haven't dropped in line with westpac. i wonder if that is going to happen because then we wouldn't need to refinance elsewhere for a better deal.
currently loan apps with cba, because their rates were much sweeter last month, but now they are looking decidedly high in comparison to all of westpac's (3, 5 and 10yr).
I agree, fixed and variable rates both have further to fall.
The market is pricing in another 1.75% of cuts to the official rate.
http://www.asx.com.au/data/trt/ib_expectation_curve_graph.pdf
I'm currently paying 6.01% variable with Westpac (this includes 0.9% pro-package discount on their SVR), and I expect Westpac will fall in line with the others and lose the 0.2% they held on to this time, which will bring my rate to 5.81%
Then if the following 1.75% official cuts are passed on, my Westpac variable rate will be 4.06%!
I'd say wait for another few months, then it will be a good time to fix!
I am also out there and buying right now. Inspected several houses over the past few weeks, and will hopefully be in a position to put in an offer when Westpac approve my new loan application which was sent off just last week.
I'm planning to buy a house worth double my current PPOR value, will rent it out for a year or two then move in and convert my existing PPOR into an IP. With those interest rates it will cost me nothing to hold the new property as an IP, and there are quite a few keen vendors selling in that price range so I'll be getting it at a good price.
Sydney house prices will rocket in a couple of years - I reckon those who don't get in now will be kicking themselves before long!
The next six months represent an opportunity not to be repeated for a long time.
Cheers,
Shadow.
That is my plan of attack also. Fix on a good rate for as long as I can.
Contrary to popular belief if you fix low and long and rates do rise (which is increasingly likely the longer you fix) you still have loan flexibility without incurring fees should you wish to move property securities around. Ive done this several times with Westpac.
Hope this helps.
rang stg ... they are not dropping their rates in line with westpac as they will operate as an independent bank to continue market competition.
however, they won't drop their advertised fixed rates until monday - so assume cba will be similar and westpac were just first cab off the rank.
oh, what bank to go too .... ?
