What would you do???

[TimD]

My normal MB is on holidays so I have been doing my own shopping around. So far the best deal I have been offered is a five year fix rate from St George @ 5.79% (offer valid for 90 days). I am looking at a 95% loan (however this may change when I receive my PPOR valuation).

My question is what would you do, lock in now for five year at this rate or take a variable rate loan?

I like the benefits of a fix rate, knowing what I will be paying for the next five years and the St George package fits what I want from a loan.

 

[angie10]

Hi TimD

Sounds like a great fixed rate. Best I can do is 6.19% for three years with ANZ and I have over 1.2m in burrowings and threatening to take your business away doesn't seem to make much difference.

Definitely knowing what you are paying is a bonus expecially with the current market being so up and down.

I say go for it.

Ange

 

[Rolf Latham]

Hiya

If your need is for a 5 year rate, then thats a sharp rate locked deal, esp with a refi at 95 %

Make sure you understand the downsides of the fixed rate as well though.

Limited extra repayments.

If rates fall further and you want to sell or refinance, could be costly.

You may need to refinance because for eg the existing lenders new valuation is poor, their cash out rules have changed, or other rules

No 100 % offset.

ta
rolf

Drawing f

 

[Player]

Very yummy interest rate

Tim,
that's a nice rate for five years, and as you've mentioned knowing what you'll pay will also give you planning power. If the rest of the terms stack up and are agreeable for you, lock it up.

I was on the phone to them last week enquiring about SMSF loans and also asked about their fixed rates for five years on investment property loans and they quoted me (by phone) 6.34%.....so 5.79 % sounds delicious.

 

[josko]

I will not tell you what I would do, as to be honest with you, I have made an error in regards to fixing in the past.

It really comes down to your decision here as there is no right or wrong, fact or fiction to choose from.

However, I can positively and rightly say: 5.79% is a fantastic Interest Rate for 5 years in comparison to other lenders.

Regards JO

 

[Bill.M.]

Great rate - what features do they offer with their fixed rate loans?

Are they going to suit your needs?

As Rolf said, no 100% offset available however some lender's will allow a redraw facility on fixed rates. WBC for example with do 3 years - 5.59% on premier advantage package with unlimited redraw & allows extra repayments up to $25k over the 3 year term.

 

[RumpledElf]

I have over 1.2m in burrowings

Are your tenants rabbits?

 

[JIT]

My normal MB is on holidays so I have been doing my own shopping around. So far the best deal I have been offered is a five year fix rate from St George @ 5.79% (offer valid for 90 days). I am looking at a 95% loan (however this may change when I receive my PPOR valuation).

My question is what would you do, lock in now for five year at this rate or take a variable rate loan?

I like the benefits of a fix rate, knowing what I will be paying for the next five years and the St George package fits what I want from a loan.

That is a good rate, if it is still available, which I don't think it is...the St. George 5 year rate is now 6.19% pa for 5 years. Went up last week.

Are they still giving you the option (for 90 days?) to get this rate despite the recent upwards move?

Unless you've already decided to go ahead with it and rate locked it before the rise, not sure how this is possible?

 

[TimD]

​

That is a good rate, if it is still available, which I don't think it is...the St. George 5 year rate is now 6.19% pa for 5 years. Went up last week.

Are they still giving you the option (for 90 days?) to get this rate despite the recent upwards move?

Unless you've already decided to go ahead with it and rate locked it before the rise, not sure how this is possible?

Yes, they are still offering me this option (i have 90 days to go ahead with it). I did start the discussions prior to the rate going up. I have just put in the papers to get pre approval. I do not have to pay for the rate lock it is just what I was able to negotiate with the Branch lending manager. She did however have to get approval from head office on the deal.

 

[Bradsdad]

​

Yes, they are still offering me this option (i have 90 days to go ahead with it). I did start the discussions prior to the rate going up. I have just put in the papers to get pre approval. I do not have to pay for the rate lock it is just what I was able to negotiate with the Branch lending manager. She did however have to get approval from head office on the deal.

Get that in writing from her Tim. the rate lock facility is there for a reason. as the rates have already moved by all rights you should have missed the boat.
If you can get a 90 day assurance at that rate in writing from her you have done well. Even if the powers to be so the information was incorrect they won't have a leg to stand on. Make sure it mentions the rate....timeframe....& fixed rate period.


Regards
Steve

 

[kaiseriqbal]

I applied for a St George 5 year fixed home loan on the advantage package at 5.79% and was pre-approved.

I went through a broker and did not apply pr pay for any rate lock. It has been two weeks since the loan has been pre-approved.

Since I am interested in buying a property after June 30, does this mean that I am not eligible for the 5.79% rate even though I applied before the rate going up?

 

[Qlds007]

Kaiser

If the rates move tomorrow you will pay the rate applicable on the date of settlement which could be totally different.

I would be thinking about locking in that rate if you want to retain it for the next 90 days.

 

[Rolf Latham]

Thats assuming St George can approve the loan, send the docs, receive the signed docs, certify for settlement, actually turn up and settle within 90 days

At the moment that might be a record............, since almost every part of the process for every deal I have in with them is a major hassle


ta
rolf