Wasn't it 4.99% for 3 years, not 2 years, back then ?
Still a little way to go on 3 year rates.
What was the lowest that 5 year rates got to back in the GFC ?
Westpac 4.99% Fixed Rate is Back
- Thread starter Shahin_Afarin
- Start date
Wasn't it 4.99% for 3 years, not 2 years, back then ?
Still a little way to go on 3 year rates.
What was the lowest that 5 year rates got to back in the GFC ?
6.0 ish. I know as my goal was a 5 year ls with a 5 in front. Instad fixed at 7.1 for three in jan 2011. DUHH!
Duhh what ??
come on pls, if you were much better at predicting rates than others, you'd be sitting on your boat in the Bahamas working out how to get better than 300 gallons an hour from your Citation.....................
we all make calls on stuff with the data we have AT THE TIME.
Hindsight sometimes makes the data we decided with INVALID, but the actual decision made is still very valid.
ta
rolf
St George bank around 5.76% or so.
All 4 majors are now offering 4.99% fixed for 2 years.
ohhh yea baby burn...
Is this rate for fixed home loans (P&I) or fixed home loans with Interest only in Advance or fixed home loans with Interest only in Arrears?
It's the regular fixed rate under the various professional packages. You generally can't get interest in advance for 2 years, only 1 year.
Im going to make a big call and say that the majors will increase their 4.99% fixed rates within the next 1-2 months and Westpac will be the first in line. Watch this space.
Regards
Shahin
Regards
Shahin
Thats as valid as anyone elses call I guess, coz if any one pf us wasany good at this rate business we would be playing the rate and currency markets with OPM.
Im sure folks would like to know the logic behind it.
I got a reminder call from my WBC bdm, coz as a plat with them, they always try and squeeze us for extra revenue, suggesting we lock every one in on fixed rate lock in on the 2 year rate .
With the cost being 15 pts, and the risk of the negative side of the lock in ( ie being locked for 90 days at 4.99 and say the rate falls to 4.79 or 4.89) the rate would have to increase by 15 to 20 pts or so to make that worthwhile, .075 would be revenue neutral.
ta
rolf
I believe ya Rolf, just didnt understand one word of your last post, but Im a believer...
same here Rolf could u elaborate abit cant understand
Question!!
is there a website that shows a trend of how fixrate has changed over the months?
Has fixed rate been dropped over the recent months?
Is it going to keep dropping?
is there a website that shows a trend of how fixrate has changed over the months?
Has fixed rate been dropped over the recent months?
Is it going to keep dropping?
When you take a fixed rate loan, the rate that you will get with most lenders is set at SETTLEMENT not application.
Most lenders will allow you to take"rate risk insurance" more commonly known as "fixed rate lock in"
For a fee ( usually around .15 % of the loan amount) the lender will guarantee the rate at the date of application, for 90 days from application.
Eg 1
rate at application = 4.99
You dont buy Rate lock, and the rate on the day of settlement is 5.19, your "funded " rate will be 5.19.
Take rate lock in that scenario at application and if the loan settles within 90 days, your funded rate will be 4.99,iethe lower rate
Eg 2
You dont buy Rate lock, and the rate on the day of settlement is 4.79, your "funded rate will be 4.79.
Take rate lock in that scenario at application and if the loan settles within 90 days, your funded rate will be 4.99, ie the higher rate
Fixed rate lock in,or rate risk insurance usually represents good value where the direction of the fixed ratein queation is flat to up, and for loans > 2 years, and questionable value if the trend is flat to down.
If you believe that FIXED rates will go up in the next 90 days, fixed rate lock in is probably a good idea.
Confusing ? yep.
most lenders will push "fixed rate lock in" and some even ask u to sign a waiver if you decline.
This little puppy, along with fixed rate break costs, is one of the favourites with the banking ombudsman or external review schemes.................
ta
rolf
Most lenders will allow you to take"rate risk insurance" more commonly known as "fixed rate lock in"
For a fee ( usually around .15 % of the loan amount) the lender will guarantee the rate at the date of application, for 90 days from application.
Eg 1
rate at application = 4.99
You dont buy Rate lock, and the rate on the day of settlement is 5.19, your "funded " rate will be 5.19.
Take rate lock in that scenario at application and if the loan settles within 90 days, your funded rate will be 4.99,iethe lower rate
Eg 2
You dont buy Rate lock, and the rate on the day of settlement is 4.79, your "funded rate will be 4.79.
Take rate lock in that scenario at application and if the loan settles within 90 days, your funded rate will be 4.99, ie the higher rate
Fixed rate lock in,or rate risk insurance usually represents good value where the direction of the fixed ratein queation is flat to up, and for loans > 2 years, and questionable value if the trend is flat to down.
If you believe that FIXED rates will go up in the next 90 days, fixed rate lock in is probably a good idea.
Confusing ? yep.
most lenders will push "fixed rate lock in" and some even ask u to sign a waiver if you decline.
This little puppy, along with fixed rate break costs, is one of the favourites with the banking ombudsman or external review schemes.................
ta
rolf
Which bank?
It is ME Bank.
