3.69 5 year Fixed P+I for IP

https://www.propertyobserver.com.au/financing/loans-and-mortgages/101438-the-latest-interest-rate-changes-following-the-rba-cuts-canstar.html?

Saw this article.....who is offering 5 year fixed for 3.69 to IP investors?

If so i have one i'd like to move from St George.

 

I wouldn't want to fix in this climate

 

Interesting @Terry_w - do you feel rates will drop substantially (it'll make little difference considering how low it is) or looking at the wider economic risk factors and possibility of an economic downturn?

 

rates will probably drop further, but that is only one aspect. serviceability is improving with various lenders, policies changing and rebates being coming and going so locking yourself in for 5 years is a long time - i guess you can always break a fixed loan though.

 

Do you know exactly what you're doing for the next 1-5 years if so fix away. But do it knowing that you're locked in and only way to get out might be to pay a fee!

 

According to a search on Canstar, UBank is @ 3.49% for 5 years.

 

Consider how much more the RBA can cut. 100bpts max. Then consider how much of that the banks will likely pass on ... maybe 50 or 60bpts? 70 at a stretch? It’s extremely unlikely they can pass it all on - margins are very skinny now and they’ll start to suffer drops in profits if they pass it all on . They’ve passed on the majority of the last 2 cuts - and in some cases they’ve gone beyond the RBA cuts for some investor rates ie 30bpts instead of 25bpts - so it wouldn’t surprise me if they were a bit less obliging if the RBA cuts again

A good yardstick might be to take the best investor variable P&I rates available today , subtract 50-70bpts and that’s probably about as low as you can reasonably expect those products to get ...... that should inform you about whether 3.69 looks good enough to commit to for 5 years

 

Or completely ignore the rates and only fix if it meets your individual circumstances and want to have fixed repayment for a fixed period of time.

 

Smells like Macquarie

 

Bummer as Ubank wont finance expats based on when i looked last year.

 

Any loan brokers here know that for sure? We have a small St George loan that we'd like to move over.

 

Not interested in borrowing any more in Australia due to LTCG treatment of expats and happy to lock in for 5 years as dont think that the next 2-3 cuts will affect 5 year rates.

 

Yeah it's Macquarie - Minimum loan amount is $150K LVR 80% if LVR is 70% or lower you can get 3.59%