Hey guys,
I'm sure this is not the first time this has been raised.. but CBA and a few other banks have dropped their fixed rates to around 6.33%.
I'm wondering if now is a good time to fix for three years?
Or should I wait until Nov 2nd to see if RBA drops rates? Would that potentially push the fixed rate even lower?
What are peoples thoughts on rates long term in Australia?
Naremburn
This by no means constitutes advice and is purely my own personal thought but I'm holding out to see what happens next month.
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 believe that in the event that we have another GFC, interest rates may rise, but the government and reserve bank will try to do everything in their power to stimulate the Australian economy, and this might mean slashing interest rate and introducing various stimulus measures. Unlike other western countries around the world, Australia has a lot more room to lower interest rates. No one has a crystal ball and ultimately it's up to you to do your own research and come to your own conclusions.
Hmmm… what just happened to this topic ???
Bradw82 wrote:Hmmm… what just happened to this topic ???Hi Brad
The site was spammed really bad overnight….lots of random threads about rolex's and German email addresses……looks like it's all been cleared up now.
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]
Hi Naremburn
The Greater are offering 5.94% for 12months, and I have decided to lock in one of my loans and leave the others to see what happens next month. The current loan was on a variable rate of 7.30% and I thought even if interest rates come down by 1% over the next 6 months or so then I would still be infront compared to my variable rate at the moment. I guess the fixed rates could come down also but that is a risk I will take on this particular loan. There has been a little bit in the media on whether banks would actually reduce their rates even if the RBA did???
Petria
jamie’s comment ‘wait & see’ is interesting, to say the least. If 3 year fixed rates are trending below the variable rate, there is a good indication that rates will drop substantially for the next while.
Taking a punt & fixing on a low rate will put you in a reasonable position unless variable rates drop substantially. The govt. Has provided the get out early card so it’ll make life interesting if there are no exit fees.
Scott No Mates wrote:The govt. Has provided the get out early card so it'll make life interesting if there are no exit fees.I don't know if the Govt. early exit fee ban will have much of an effect. If someone wants to jump ship now – chances are their loan was taken out before the introduction of the legislation so they might still be up for early exit and discharge fees. If they fix their loan – they prob won't benefit from a refi because the break costs will be too high.
I wrote an article for API recently on the topic here
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]
a bit of tongue-in-cheek Jamie. Property is too big an investment to go into lightly. gens x & y will need to acknowledge that they can’t simply run off to Jools & Swanie to change the investment framework just because long term, commitment & informed consent don’t meet their requirements.
Thanks guys,
And Petria, 5.94 sounds incredible. Are there any tricky conditions attached?
Scott No Mates wrote:a bit of tongue-in-cheek Jamie. Property is too big an investment to go into lightly. gens x & y will need to acknowledge that they can't simply run off to Jools & Swanie to change the investment framework just because long term, commitment & informed consent don't meet their requirements.Haha – I'm with you.
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]
Not that i am aware of. I have asked questions such as am i locked in for a longer period after the fixed interest term expires and the reply has been no. So i have now signed up for the 12 months fixed of 5.94%
Hi Naremburn
How did you get 5.94 with greater? What was the conditions in regards to loan amount & LVR? Did you go through a broker?
Lefty
Hi Lefty
We currently bank with the Greater and I had seen this rate advertised on their Website and on the TV so I enquired about it with our branch manager. We have completed the paperwork and it is at head office, now in the process of switching two of our loans to this rate. As for LVR, when the loans were initially taken out the LVR was 90%.
Petria
You must be logged in to reply to this topic. If you don't have an account, you can register here.
