Fixing interest rates

Viewing 7 posts - 1 through 7 (of 7 total)

pauls05
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@pauls05
Join Date: 2008
Post Count: 10
March 20, 2013 - 2:14 pm
Just another topic regarding fixed rates.. sorry
When do people think fixed rates will bottom out?
Current four year rates are 1.3% lower than my current fixed rates on several loans (which are about to become variable in the coming couple of months)
Im looking to fix for as long as possible but am wondering when do people think they may begin to increase? taking into account westpacs standalone rate hike on their 2 year rate the other day. possibly within 6 months?
Any feedback would be great
-Paul
Freckle
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@freckle
Join Date: 2012
Post Count: 1,680
March 20, 2013 - 4:32 pm
Already have. On the way back up.
TheFinanceShop
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@thefinanceshop
Join Date: 2012
Post Count: 1,271
March 20, 2013 - 8:22 pm
Westpac increased this week and the other majors will follow within the next few weeks.
Regards
Shahin
TheFinanceShop | Elite Property Finance
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Jamie Moore
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@jamie-m
Join Date: 2010
Post Count: 5,069
March 20, 2013 - 9:00 pm
I suspect NAB/HSL will be going up soon.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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jonmardell
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@jonmardell
Join Date: 2010
Post Count: 20
March 21, 2013 - 11:07 pm
in my opinion the 2 year rate has bottomed out with westpac being the first to increase theirs but ING threw a spanner in the works this week by dropping theirs to 4.99%.
Derek
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@derek
Join Date: 2004
Post Count: 3,544
March 22, 2013 - 12:16 am
Hi Paul,
Fixed rates are pretty low right now and I don't see a lot of value in trying to time the trough to perfection.
If the numbers work for you at the moment then lock in. At least you'll have certainty for the duration of your 'fix'
Having said that be mindful you do not fix for too long as break costs can be expensive. From my perspective I reckon 3 yrs is a good timeframe – not too long not too short.
Obviously your plans will have a key role in determining what time frame best suits you.
Jamie Moore
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@jamie-m
Join Date: 2010
Post Count: 5,069
March 22, 2013 - 1:27 am
Agree with the 3 year comment from Derek.
Any longer than 3 years seems to become a bit too long – and it's difficult to effectively plan this far out.
Personally, I can't see fixed rates going any lower. If you're considering locking in a fixed rate then I wouldn't ponder it for too much longer. Make sure you get your broker/banker to explain the pros/cons.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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