What interest rate are you paying?
- Thread starter travelbug
- Start date
My loans with CBA, Adelaide Bank are as follows:
7.09% expiring in Aug. 2008
7.09% expiring in Feb. 2009
6.55% expiring in April 2009
6.95% expiring in Aug. 2010
7.45% expiring in July 2010
6.89% expiring in Jan. 2012
2 loans at 8.7% variable
My average loans rate is still under 7.5%......
7.09% expiring in Aug. 2008
7.09% expiring in Feb. 2009
6.55% expiring in April 2009
6.95% expiring in Aug. 2010
7.45% expiring in July 2010
6.89% expiring in Jan. 2012
2 loans at 8.7% variable
My average loans rate is still under 7.5%......
Hi
On a tangent of this.
We've seen some borrowers who figure they'll wait until their loan reprices and review it to see who's offering what.
What you can consider is if you have say 3 months or less before your loan reprices (and you want a fixed) you check around and rate lock the application. Then it gives you a bit of breathing space to know what you're going to get when you roll over.
So say in the case of above if a loan is going to reprice in September and its july 1 now, thats 2 months away. so you could lock in todays rate and use it in 2-3 months time when the loan reprices. Just because you're locking it in doesnt mean you have to refinance immediately and you can wait for the repricing.
Just watch what you do and dont have to pay upfront out of your pocket to accomplish it.
On a tangent of this.
We've seen some borrowers who figure they'll wait until their loan reprices and review it to see who's offering what.
What you can consider is if you have say 3 months or less before your loan reprices (and you want a fixed) you check around and rate lock the application. Then it gives you a bit of breathing space to know what you're going to get when you roll over.
So say in the case of above if a loan is going to reprice in September and its july 1 now, thats 2 months away. so you could lock in todays rate and use it in 2-3 months time when the loan reprices. Just because you're locking it in doesnt mean you have to refinance immediately and you can wait for the repricing.
Just watch what you do and dont have to pay upfront out of your pocket to accomplish it.
Keith
Who is your 8.55% variable with and does it have to be a large size loan to get this rate?
Cheers
Keith's example here and a few others have made me consider something...
If the banks are still honouring all these low rates that are now ticking over, then clearly their returns will improve in this sector as they tick up to 8.6% odd. They've been moving independent of the RBA to cover their spreads and ensure that resi lending is still profitable in its own right.
But, if all these rates suddenly kick more coins into their coffers, then the profitability of resi lending will improve for them without moving their headline rate. In effect, fixed rates coming off contract should be lessening the risk that the banks will move independent of the RBA to protect spreads. In fact, it should mean that in time they can drop their headline rate a bit when most of their loan book is now back to near the current variable rates.
Just a thought.
Cheers,
Michael
FWIW, I'm 100% variable with WBC at 8.57%
Im not sure I follow your reasoning Michael White on fixed rates expiring. I always thought fixed rates were matched funding, ie the bank bought a chunk of money fixed for 3 years at x rate, and sold it to you for 3 years at x.1 rate. At the end of the 3 years, the money goes back to switzerland, there isnt any increase in banks profit, in fact it puts more pressure on the banks margins as they need to finance the extra that was covered by the swiss money.....
I got 7.73 on my variable loans with ANZ, and I fixed 2 years ago for 6.65 also with ANZ.
I got 7.73 on my variable loans with ANZ, and I fixed 2 years ago for 6.65 also with ANZ.
Oops, CBA raised var rates to 8.69% in April, I've edited & just updated my spreadsheet thanks. It's just a pro-pack 0.7% discount off standard rate.
fixed 7.18
Var 9.10
exp May 2010
Teachers Credit Union
Var 9.10
exp May 2010
Teachers Credit Union
I am also with the CBA....I get 0.75% off. But am trying to get 0.85% off...I technically have over 500k in borrowings.
I believe they are willing to come to the party.
I believe they are willing to come to the party.
WOW! I was going to check with TCU but not at that variable rate.
In Sundays paper a few weeks ago they were listed as having a good rate.
I am also with the CBA....I get 0.75% off. But am trying to get 0.85% off...I technically have over 500k in borrowings.
I believe they are willing to come to the party.
I think you should be able to get 0.8% off. I have only 450k in variable with cba on the professional package or what ever its called these days, and i have 0.8% off.
Seems most you guys are opting for variable rather then fixed term. Then you must believe that interest rates will drop in the near future as I do?
Bummer when you come off the fixed term and on to the new rates
Cheers,
Bazza
hey Bazza,
Be thankful it's not thousands!
regards Jo
