I only need another 50 K more equity before I can buy I think. So hopefully fhb here have pushed up values a bit in the west with the boost, but still it may take at least a few years before rhapsody and harmony will dance for me
Westpac 3 Year Fixed
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I only need another 50 K more equity before I can buy I think. So hopefully fhb here have pushed up values a bit in the west with the boost, but still it may take at least a few years before rhapsody and harmony will dance for me
Yeah I think so, so that i can provide my ppor as security. I'll have to cross collatoralise for the first ip purchase.
Do you have a ppor and an ip. Or just an ip and looking to buy ip # 2?
Also will talk to mb when i meet with him to fix my loan next year whats involved.
Hi Marty,
I just asked! My wife and I have been Westpac customers for a long time, all our bank accounts and credit cards have always been with Westpac so I guess they just wanted to be nice to us!
I am pushing for a full 1% discount right now as we are significantly increasing our borrowings for a new purchase, but I don't think we'll get it - timing is not right for more discounts, maybe next year.
Cheers,
Shadow.
I should be pushing for more then!!
Yeah I think so, so that i can provide my ppor as security. I'll have to cross collatoralise for the first ip purchase.
Do you have a ppor and an ip. Or just an ip and looking to buy ip # 2?
Also will talk to mb when i meet with him to fix my loan next year whats involved.
I am renting at the moment, have 1 IP and looking for a 2nd very shortly
Hi everyone,
I was wondering about the conversion rate. It seems that the conversion rate for 3 year fixed is generally same even though the fixed rate may vary.
For example the 3yr fixed with Westpac is 4.99% but the conversion rate is 7.10%. It was my belief that if you fix it for 3 years what you get charged is generally around the conversion rate.
Is this correct, of not could anyone explain a bit more on conversion rate and how it is derived.
Thanks
dayananad
I was wondering about the conversion rate. It seems that the conversion rate for 3 year fixed is generally same even though the fixed rate may vary.
For example the 3yr fixed with Westpac is 4.99% but the conversion rate is 7.10%. It was my belief that if you fix it for 3 years what you get charged is generally around the conversion rate.
Is this correct, of not could anyone explain a bit more on conversion rate and how it is derived.
Thanks
dayananad
Dayanand,
I think you are talking about the comparison rate?
The comparison rate is calculated on a 20, 25, or 30 yr term. They use the fixed rate of 4.99% for the first 3yrs then it goes to the higher rate of 7.70% (or whatever the variable rate is at the moment) for the remaining years. Which averages to 7.10% for the full life of the loan.
I think you are talking about the comparison rate?
The comparison rate is calculated on a 20, 25, or 30 yr term. They use the fixed rate of 4.99% for the first 3yrs then it goes to the higher rate of 7.70% (or whatever the variable rate is at the moment) for the remaining years. Which averages to 7.10% for the full life of the loan.
There is no such thing as customer loyalty with banks. Your financial situation must be favourable to/for them and they view you as a low risk customer.
Never confuse profitability for loyalty when talking about banks.
Regards JO
makes sense vbplease; + I believe this is what Rolf meant in his earlier response when he stated assumptions
So, does anyone know of any other ongoing regular/periodic fees on the 4.99% wbc 3yr fixed rate deal (besides the annual pro pack fee)?
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I am renting at the moment, have 1 IP and looking for a 2nd very shortly
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Wowee!!! I'm with Westpac NZ & for 2 years been slugged with the high variable rates at one point 10%
Now my time has come!! I also have small loans coming off previous fixed.
Suddenly I'm looking at some serious equity across the Tasman.
Never a dull moment with property investing.
KY:
Now my time has come!! I also have small loans coming off previous fixed.
Suddenly I'm looking at some serious equity across the Tasman.
Never a dull moment with property investing.
KY:
Hi again, just checked Westpac.co.nz
2 year fixed @6.8% is the best at the moment, still not bad considering I've been paying 10.45, now variable 8.6
I can't stop smiling.
KY
2 year fixed @6.8% is the best at the moment, still not bad considering I've been paying 10.45, now variable 8.6
I can't stop smiling.
KY
Just saw the advertisement in the paper regarding this deal. There is a mention that it is only for new customers of Westpac. I'm a Westpac customer so wondering whether I am eligible. Do any of the Mortgage Brokers on this forum know?
Im also a current Westpac customer. Westpac have already told me if you are a current customer on the premium advantage package you are eligible for 0.2% discount off their advertised fixed rates.. This being the case their 3 year advertised fixed rate is 5.19% bringing it down to 4.99% with discount applied.
Westpac's 5 year advertised fixed rate is 6.49%, bringing it down to 6.29% with discount applied.
Hope this helps.
Sure does help and thanks for the prompt feedback. I've got a premium advantage package so I'm eligible.
After reading all the posts on this thread, I'm still tossing up whether to wait until after the next RBA reduction in February to decide whether to apply for the deal.
Yeah Im doing the same...Will play the wait and see game until after the RBA sits again in Feb/March and see what Westpac is offering then..
Im looking for a 5/7 year fixing as I believe 3 years will not be long enough (after the current economic crisis subsides) to ride me through the high rate hikes I feel we will be in for due to the RBA's attempt to combat the high CPI.
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This is my favourate thread !!
My strategy ( Today, probably different tommorrow ), is I'm moving three CBA varable mortgages to Westpac and fixing them for 4.99 on the proviso that they give me a pre approval.
I have different scenarios that I've sent my MB.
$300,000 for a fixer up house, with expected rent at $310.
Or two town houses at 390,000 with a combined $440 weekly rent. I'll then be able to bye when I see a great bargain offered, or the option to wait and see what happens !!!
I like my town houses which are all now way over possitive.
I'll have to bye something soon, other wise this will be the first time in about 5 years that I'll have to pay tax.
My strategy ( Today, probably different tommorrow ), is I'm moving three CBA varable mortgages to Westpac and fixing them for 4.99 on the proviso that they give me a pre approval.
I have different scenarios that I've sent my MB.
$300,000 for a fixer up house, with expected rent at $310.
Or two town houses at 390,000 with a combined $440 weekly rent. I'll then be able to bye when I see a great bargain offered, or the option to wait and see what happens !!!
I like my town houses which are all now way over possitive.
I'll have to bye something soon, other wise this will be the first time in about 5 years that I'll have to pay tax.
Why not wait a little while to see what CBA does with these 3 year fixed rates? Alternatively, go to CBA and see whether they can match Westpac's deal. Refinancing can be costly.
