Westpac Fixed Rates 17/02/09
- Thread starter kev007
- Start date
Finally someone sharpening the pencil. Good to see them keep the pressure on the other banks.
Already done on this 5 year fixed rates thread
http://www.somersoft.com/forums/showpost.php?p=513609&postcount=330
Dave
http://www.somersoft.com/forums/showpost.php?p=513609&postcount=330
Dave
huh so what was the difference prior to the 17th??
yeah, but when you come off rates are probably going to be 6-7% variable...
Lame... the 5 and 10 year rates look like they havent changed at allWahh
The 5 year dropped a bit in the last few days.
oops it must be those drugs I'm taking it wasnt teh 4 yr rate that dropped it was teh 3yr rate, sorry
Spud
so if left on the variable you be paying more as it increases to 6-7%, so therfore wouldnt it be better to fix, at least in thos 3yrs you got a good rate!!! so what if the rates go up, if your a good investor you should know how much you can afford and why not make the best of those 3 yrs....
I believe that everyones personal sitution is different and I am sick of reading all oohh rates will be this or that in so many yrs, its getting a little old mate...
As already previously mentioned Im sure, locking in rates is NOT about whether rates are going up or down - its about insulating yourself from the economic climate (for X time) as a risk management tool.
Its less obvious when first starting out from a newbies perspective but becomes increasing more obvious and relevant (with experience) as your portfolio substantially grows & debt levels increase.
Hope this helps.
Its less obvious when first starting out from a newbies perspective but becomes increasing more obvious and relevant (with experience) as your portfolio substantially grows & debt levels increase.
Hope this helps.
For this reason I think it is especially important to get a long enough term such as 5 years. 3 years is not long enough in my opinion to "get ahead" financially before rates go up.
Salary increases and rent increases take years to come through, it takes time for the mortgage to reduce in real money.
Many people can afford the current rates now, but not 9% now. However in 5 years time 9% on the original mortgage won't seem so bad after capital gain, wages increases and rent increases take effect.
Yep. all depends how far one is down the investment portfolio road - their current financial position, their individual goal/s, their time frame for those goal/s, their exit strategy and their individual personal risk profile.
