Westpac 3 Year Fixed

MichaelW said:
Not to be a downer or anything, but 4.99% isn't that special...

I'm happy to wait and ride the interest rate roller coaster down.
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Agree completely, Michael.

Banks have never been known for their generosity or philanthropy - so I'm cynical enough to think that if they're offering 4.99% for 3 years, then they fully expect rates to be below that level in 3 years time.

Not time to fix for a while yet, methinks!

Cheers
LynnH
 
LynnH said:
Banks have never been known for their generosity or philanthropy - so I'm cynical enough to think that if they're offering 4.99% for 3 years, then they fully expect rates to be below that level in 3 years time.
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I think the opposite Lynn.. I reckon the bank is wanting to roll the majority of their current loans book over to the 3 year deal because they want them all to roll out into what they predict will be a higher rate climate at that time - making a back end deal killing.
 
Rick

Mmmm, you could well be right - that's certainly another way of looking at it! Whatever the reason, they sure ain't doing it out of the generosity of their kind little hearts! There'll be some angle, some 'gotcha', somewhere .....

I'll still be persevering with variable for a while yet. :D

Cheers
Lynn
 
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Shadow said:
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.
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Shadow, PM me some details, I'd love to know where you're buying and what sort of rental yield you're talking about. You're also on the Northside so are probably hunting in my 'hood. Might follow in your footsteps and look to trade up the PPOR. There was a great place going in Elanora Heights with panoramic ocean and lake views that my wife is a bit smitten with. Wouldn't be more than $2.0-$2.5M in this market.

Shadow said:
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. :D
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Amen to that! And don't any of you come back in 12 months time and tell me you weren't warned loud and clear...

Cheers,
Michael
 
lizzie said:
rang stg ... they are not dropping their rates in line with westpac as they will operate as an independent bank to continue market competition.
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That provided me with some chuckles. Is that what they call it these days.

As for interest rates, I would wait until at least March/April. It is almost guaranteed that variable rates will come down.

Now what we don't know is any futher unknown negatives that may come to light that might allow rates to be cut even further. 4.99% might sound OK today, but might be expensive if fixed rates are at 4% in early 2009.
 
buzzlightyear said:
As for interest rates, I would wait until at least March/April.
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that's my brokers opinion to - regardless, we'll wait until early next year.

he also pointed out that westpac and cba are currently fighting for market share, and that westpac is tending to move first to get the upper hand but that cba has deeper pockets, so will be interesting.
 
Shadow said:
I'm currently paying 6.01% variable with Westpac (this includes 0.9% pro-package discount on their SVR)
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Hi Shadow.

How did you qualify for 0.9% discount? The best I can get (unless I'm not barking loud enough) is 0.8%. Am also with W/Pac and have over 1mill in borrowings.

Regards
Marty
 
folks ... quick question.

I think I understand the educated reasons for fixing your rates (known cashflow ==> lower risk?) .... but do you ever look at the comparison rate for fixed rates?

in this instance ... what's the comparison rate for wbc's 4.99%? would it be the same difference/margin as with pro pack variable (i.e. only the annual package fee on top of base fixed or variable rate)?

hence for 100k of debt, would you be paying only 4999 + annual package fee per year? or are there any other hidden costs/fees in this fixed rate (& hence visible via the comparison rate)?
 
Would the original loan not remain the same and you would pick up a loc against the property assuming there was equity by then?

Unless you changed banks of course.
 
Kim5 said:
I would like to fix for 5 or 7 years, but what happens when I went to re-finance in a few years time to buy my 2nd property? :confused:
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Would have to talk with your lender, should be able to sort out a deal if you stayed with them for the 2nd IP. However I havent been in that situation so if anyone else out there could please expand as I may well be in the same boat as Kim shortly by fixing and looking at a 2nd IP in early 09....
 
Hiya TDH

Comp rates are the bokers best friend............because in reality, in most cases they mean nothing, and the whole idealogy is flawed because the assumptions made rarely apply.

ta
rolf
 
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