and here we go again for 2016... "increments" - expect more

Woah, did not see that coming. I'm guessing high likely the other 3 majors will follow soon?

Is it a good time to go fixed now (say for 2 years) with this uncertainty coming?

 

Westpac and ANZ already have (i believe ANZ did this a last week/a few weeks ago). NAB's LOC rate is already reasonably high, so i don't see them changing. CBA probably will - given their LOC rate is really quite low after a 1.5% discount (cheaper than SVR, by 0.12%).

If i recall correctly, late last year it was the SVR's that rose and LOC products remained the same - making them relatively more attractive. This is just keeping the pricing difference between the two as the same as it has been.

Cheers,
Redom

 

This was to be expected with the new APRA regulations coming into effect in 4 months. Banks will be passing on the cost of having to hold more reserves to their customers (so they can keep their fat profits and juicy shareholder dividends).

I'd say wait just a little longer (1-3 months) before locking into 3-5 year fixed arrangements. That said, now is still a great time to lock in, you may not hit the bottom of the rates (official cash rate expected to decline) but you're basically there.

 

Didn't realise Westpac had already.

Are you referring to the increase at the end of last year from Westpac, and this is St George catching up? I thought this was a new round of increases.

 

@Fungus - sorry i meant Westpac have already announced a 0.17% rise. It came out at the same time as St George. New round of increases.

 

But i agree with @euro73 general sentiment - the way the market and regulatory environment appears to be heading, both domestically and internationally - there will likely be some further investor rate rises for this reason (higher capital arrangements increasing the cost of capital).

 

Slightly outdated but still useful: Australian Property Investor :: Today's Interest Rates

 

@Redom, I'm with Westpac and I haven't been made aware of the increase by them. Only notification was for the increase in November last year I think it was.

I take it these announcements have been made in the last week or so?

 

Yes at about 9.30am this morning - an 0.17% rise to LOC rates.

 

Thanks for the clarification, @Redom. Amazing as always!

 

With regards to rate rises, it's always worth a shot calling the bank and complaining about the increment. Only a small amount of investors I know do this but those who do can usually save themselves the increase as the bank wants to keep their business.

 

I got my broker to try just before this latest announcement - heard back this morning and Westpac did not budge. So looking at jumping over to CBA with their current cashback offer and possibly looking at fixing for a couple of years at 4.09% (if my broker can get me that).

 

@Fungas what periods are those rates related to?

 

@Chilliblue - Current Westpac loan is variable. Hoping I can get 4.09% on a two year fixed as I've seen a few people get it, but just have to see.

 

With CBA last week, I got 4.19% fixed for 2 yrs for IP, or 3.99% for PPOR. Very competitive at the moment. These weren't large loan amounts, so if you've got a large loan size you may be able to get more.

 

Hi jess, if not fixed rate, then what is the best rate we can have for IP and OO?

Should we have fixed rate now? or keep variable? loan amount: $500.000

Thanks

 

@andy ngo Whether you should fix is not really a yes or no answer, it will depend on your circumstances and future plans. Are you with CBA at the moment?

 

Yes. I am with CBA!

 

Is this the nail in the coffin ?