Westpac 4.99% Fixed Rate is Back

[Ausprop]

i've got a twitchy finger, thinking about pushign the button on the nab 4.99% before it disappears - presumably they will do away with it soon too if westpac already have?

 

[HotRod]

i've got a twitchy finger, thinking about pushign the button on the nab 4.99% before it disappears - presumably they will do away with it soon too if westpac already have?

...and what happens when the variable drops another 0.5 to 0.75%???

 

[Ausprop]

...and what happens when the variable drops another 0.5 to 0.75%???

you need business conditions to deteriorate, then get the RBA to admit it, then get the RBA to act, then get the banks to follow suit. none of them seem likely?

 

[Peter_Tersteeg]

...and what happens when the variable drops another 0.5 to 0.75%???

I can see the variable dropping another 0.5% within 12 months, but given that most people are paying above 5.5%, their worst case might be a break even on the end rate.

You could even argue that rates will drop 0.75% over the next 2 years. If they did this in a linear fasion, you'd still be better off over the full 2 year period. Any drop is not going to happen overnight at this point.

Frankly if rates do drop that far, as Ausprop suggests, there'll be serious economic problems alongside the lower rates. A lot of people will find themselves without jobs, both landlords and tenants. We may find rents collapsing alongside the rates.

 

[Rolf Latham]

you need business conditions to deteriorate, then get the RBA to admit it, then get the RBA to act, then get the banks to follow suit. none of them seem likely?

in a market where we create 60 000 new jobs, but the unemployment rate remains steady due to more people looking for work, whats going to happen next month

ta
rolf