I rang yesterday to fix part of my loan with Rams as they had not yet increased the rates on their fixed rate products as had CBA, NAB and Westpac ( odd that they hadn’t tried it out on Rams customers first ) only to be told this morning by an oddly nice guy that their fixed rates on 1 and 2 years will be dropping by another .2% on Friday.
Does anyone know why this may be the case, considering Westpac own them and have gone in the other direction?
No complaints obviously – quite the opposite, I suppose but it is interesting times.
On the subject of Rams – now that they're owned by Westpace does that mean they're now a safe proposition?
Their fixed rates remain very competitive and we're considering refinancing a couple of loans with them.
And, yes, it is interesting that Rams seem to be offering a better deal than their parent company, Westpac. Perhaps Westpac is just trying to build up the Rams name again after all the bad publicity?
Thanks,
CarlinInterestingly enough i see their 10 year fixed rate went from 6.19% to 7.09% on Friday.
Richard Taylor | Australia's leading private lender
Wow 6.19% was a great 10 year fixed rate.
Hijacking this thread for a while.
Btw, what is the longest Fixed Rate lenders offer? I have seen only up to 10years for fixed rates so far. How about 15years or 20years?
Cheers
NitImagine the break fees on a fixed term 20 year loan!! ouch!!
Geeeeezzz!!! I wish I'd seen that 10 year fixed rate!!! I wonder what the comparison rate was.
Any other 10 year fixed rates like that around still?
Also….I know fixed rates have gone up slightly, but if Reserve Bank drops the rate again is it at all feasible that fixed rates will come down again??
CAR wasnt that bad but deal has been and gone so probably not relevant.
Best rate for 10 year fixed (and we dont do many) is circa 7%.
Richard Taylor | Australia's leading private lender
Heard again that Reserve Bank likely to drop rate by full 1% before end of year.
So anyone able to respond to my second question in previous post? ie:…is it at all feasible that fixed rates will come down again??
carlin wrote:Heard again that Reserve Bank likely to drop rate by full 1% before end of year.So anyone able to respond to my second question in previous post? ie:…is it at all feasible that fixed rates will come down again??
In theory, It’s definitely feasible but I think if the RBA drop the rate by 1% over the coming year then the banks would probably only pass 0.4% of that on as they have shown their intent by passing on 0.1 for every 0.25, in regards to variable rates.
This seems to be a little battle that has been won by the banks, although I dare to say and only in my opinion – anybody with a variable loan and/or looking to fix their loan just now, would feel completely aggrieved with this. It would be nice to have more but we are maybe just going in for the kill.
Most banks appear to have raised all fixed rates over 2 years based on what is the supposed global economic outlook ( a return to normalality, with a sprinkle of scepticism ) and increased anything above that by the same and maybe a little more.
My gamble is taking a 2 year fixed amount for 5.29% ( in relation to Rams ) for a portion ( 70% ) and leaving the rest variable. Maybe I can fix some of the lower portion if rates drop a little more
Please feel free to crucify me if you think I’m a complete idiot.
G, Day Carlin
Taking snippets from an article I read from an investment magazine – "Fixed rates are not solely influenced by the RBA – they are also influenced by those who are investing in the fixed rate wholesale market. Fixed rate loans are largely funded with money raised by lenders in global financial markets, plus a retail margin, plus a margin for risk. Variable loans are influenced by the official rate set by the RBA, plus a retail margin added by the bank"
So in answer to your question. I'f the RBA does lower the cash rate further this may not be enough by itself for banks to lower the rate of fixed loans. with less competition in the lending market at the moment (loss of ST George, Bank West etc) they can afford to be greedy.
Rams 1 & 2 yr fixed rates were reduced but 0.3 and 0.2% respectively, 3, 5 and 10 yr were increased by 0.2, 0.5, and 0.9 and no change to 4 yr.
Raymond
Could you give us all the new rates across the board so we can compare.
Richard Taylor | Australia's leading private lender
Rams Full Doc Rates:1 Year Fixed (p.a) 4.99%(-0.30%)2 Year Fixed (p.a) 5.29%(-0.20%)3 Year Fixed (p.a) 5.79%(+0.20%)4 Year Fixed (p.a) 6.29%(n/c)5 Year Fixed (p.a) 6.49%(+0.5010 Year Fixed (p.a) 7.09%(+0.90%)
cheers
So perhaps we can read into this that RAMS are predicting rates to stay low for the next two years, then they either think they will rise or they're not sure hence increasing the fixed rates from 3years on.
Seems to be in line with predictions of those economists brave enough to make them in current climate.
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