Sorry guys the other question I had was its a good time to go variable or fixed considering how much the rates are?
Hi Mark
Fixed rates are good for those that need certainty in their repayments – from that perspective, they can be great for budgeting.
On the flipside, fixed rate loans are usually inflexible. There aren't many that allow for a 100% offset to be attached and if you need to exit the loan during the fixed period you'll probably be hit up for large break costs.
If you are seriously considering fixing your loan – you should also consider keeping a portion of the loan variable so you can take advantage of the normal features associated with a variable product.
Fixed rates are quite low at present – whether they'll go down or up is anyone's guess.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I dont need a lot of the bells and whistles nor the flexibility. I think im going to go with the fixed rate – what the best rates right now ?
How many years are you looking to fix ?
What is the lvr and what is the loan size ?
Do you want any particular features with the new loan ?
Are you happy to take 50% variable and 50% fixed.
With this information certainly going to get a better answer.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Like Richard said – there's too many unanswered questions to provide an accurate response. It might be worthwhile contacting a decent broker to explore your options.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Markyinvest wrote:Sorry guys the other question I had was its a good time to go variable or fixed considering how much the rates are?Depending on you personal circumstances it could be a good time to lock away some of your loan. You could have some variable and some fixed which would allow you to make extra payments if you have the ability. It is really dependant on what your plans are and your unique circumstances. Currently st george is 5.79% for 3 years fixed which is pretty good imo
Great points/discussion. We are in unchartered territory again – not since after the GFC have I seen fixed rates start with a 5.
I think IF you have no plans to sell your property, and are looking long term if you can get a 3 year rate that is in the 5's and you want some certainty there is nothing wrong with that. The lowest they have ever been for 3 years is the mid to high 5's and plenty have been crying since then that they missed the boat last time. Plenty fixed in rate at the 8+ % though and have been crying ever since too!All the best with what you decide. ONE WARNING though……………many lenders (ah, lets just say it, pretty much all) when your loan comes of a fixed rate will put it back to their 'standard variable rate' meaning you may habe to reapply to get a discounted variable rate loan then…..and if your work or personal circumstances have changed and you may not qualify for the loan you have been paying off merrily for the last 3 years, you may be stuck in a higher rate variable loan that will erode any savings you had over the coupdl of years prior.
All the best with what you decide. …but yes, 2 or 3 years starting with a 5 is hard to say no to at the moment I agree.Hey everyone,
So I’m looking a fixing 50% of my loans.
Would I be better off making each of them 50/50 variable/fixed.
Or just half the loans 100% variable and leaving the rest variable (with off-set).Are there any advantages to either or is it just wasted money.
Hi NHG
The way you split the loans is up to you.
I fixed a couple of loans on my own IPs recently because they're set and forget properties that I don't intend on selling or extracting equity from within the next few years.
One thing I'll mention though is that if you have a PPOR loan that you're looking to fix – I'd leave a portion of it variable so you can still utilise features like an offset account.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks Jamie.
Say I completed renovations and also bought the IP undervalue to start.
If it is 100% fixed, is it still possible to revalue and extract equity for a completely new IP purchase?^ if your looking at drawing out equity etc,,,,don't fix, because the valuation with your current lender may not stack up and you may be force to refinance to a different lender for a better valuation- in order to grow financially/ lower LVR/ LMI cost.
Mick C | Shape Home Loans
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Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Yep it's still possible. You just need to be confident that your current lender will allow you to access the equity for a future purchase. If they don't and you've already fixed the loan – then you may need to refinance which will incur break costs.
Perhaps do both at the same time – extract equity (keep that portion variable) and fix the larger portion all at once.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Forget fixed rates starting with a 5 they are starting to start with a 4 now.
4.99% fixed for 2 years effective tomorrow is getting very mouth watering.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Wow Richard, who is offering in the 4s?
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Advantedge – they are backed by NAB and operate only via the broker channel.
A good product if you're not in need of an offset.
We tend to use them when the client is getting closer to hitting a serviceability wall.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Yes lvr under 75% and over 200K but still a very attractive product for the right client.
I love Advantedge as they are so transparent in their credit policy, No application, valuation fees, no ongoing fees or charges and service with the right BDM is second to none.
Admittedly not for everyone but if you are a vanilla investment product you really can't go far wrong with the backing of NAB behind them.
Course not for everyone and lots of things they wont do but it is what the market needs someone who stands up and does deals without all of the nonsense that goes with it.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Jamie, you are absolutely correct. Fixed rates are absolute historic lows. If you plan to be in the home for a short amount of time an adjustable loan may be the best option. However, if you’re looking for security and plan to be in your home long-term, go with a fixed rate mortgage.
Has anyone ever beaten the banks going fixed?
From my understanding if you can fix your interest rate at 5% for the next 3 years (given the current variable rates) the banks economists are predicting RBA rates will fall further over the next 3 years.
IMB offers 5.49 for 1,2,or 3 yrs fixed is this still bit high ? I dont really have much choice I have to stay with them ( I think )
and on my last statement it shows I am paying 5.860
zehra wrote:IMB offers 5.49 for 1,2,or 3 yrs fixed is this still bit high ? I dont really have much choice I have to stay with them ( I think )and on my last statement it shows I am paying 5.860
Why do you have to stay with them?
It's not high – but there are betters out there.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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