wholesale rate

[mcb25]

Hi, I am new in this forum & would like to get some opinion from the forum.

Currently I have loan with fixed rate at 6.49% for 5 years since Mar'06 & now I want to change into variable. When I call & ask the bank they want to charge me a huge penalty for the remaining 2.5 years.

The bank said when in Mar'06, the whole sale rate was 5.83% & now the wholesale rate is 4.39%, so practically they want to charge me almost 1.5% pa for the remaining 2.5 years.
When in Mar'06 reserve bank rate was 5.25% & the same like now, But how come the current wholesale rate much lower.

Do anyone in the forum understand or know about the current wholesale rate.

Thanks,

 

[Ridin-High]

you gotta weigh up would you save more by breaking or not.

tbh 6.49 i wouldn't lose sleep about being locked into that

 

[tess85]

6.49% fixed rate is not too high, considering that the variable rate of most banks is around 7.7%.

You've done ok by fixing during a time when interest rates were going up. Sure, they're coming down now, but it doesn't sound worth it to break!

 

[mcb25]

The reason I want to break it now, because I am going to sell my house.

If not, I will not break my fixed rate.

What I can't understand why the current wholesale rate is very low 4.39% ?

Any one know ?

 

[Jamie_D]

The reason I want to break it now, because I am going to sell my house.

If not, I will not break my fixed rate.

What I can't understand why the current wholesale rate is very low 4.39% ?

Any one know ?

The banks need to make money too!
Unfortunately they are not the YMCA...ha ha and their shareholders need to be paid