Anz exit fees wtf

I've locked in a reasonable amount over the years. Under 6% happy days - locks in for 5.99% another loan bit later under 5% can't lose - locks in for 4.99% few other loans 4.39% and 4.19%. All in all would have been better off variable. But I made decision at the time to lock in, I was happy with what the repayments were, I knew what rent I was getting as all loans were for IPs.

Now happy to ride variable as these come off fixed, will only look to move to fixed when I see rates increase... not the first increase maybe the 2nd or 3rd.
No point trying to pick the bottom, likely to get it wrong. Would prefer to sit as variable whilst it's low - jump aboard when it's on the way up thus keeping my rate the same whilst it increases.
Hopefully when I lock in next time on the way up I can come off fixed on the way down like @Peter_Tersteeg got to do on one of his loans.

 

..... What??? did the person go ahead with this?

I have one at $12K due in November, and I thought that was bad enough

 

Thanks Peter, I appreciate your thoughts here

 

@MTR

Why are you breaking it and why November? I didn't think they could calculate a break cost that far in advance.

I had a L plater error a few years ago - moving stuff from personal name to trust meant stamp duty plus needing to break a fixed rate loan. Luckily the new rate was much better so it ended up even on that score but still had to pay stamp duty as the cost for better structure.

 

Lenders can calculate the break fee at any point. If you sign up for a 3 years fixed rate, they can break it the next day... for a fee!

I have not been stung with break fees for fixed but I did get stung with 'exit fees' when refinancing loans from the bad ol' days (pre GFC loans). The fees were "Deferred Administration Fee" and "Settlement Deferred Fees". Total cost to refinance was around $4k. Interest savings in the first 12 months were $12.8k! It was well worth it...

 

not breaking, it's when Period expires

 

I don't understand why it's $12k then?

 

confused you sorry, last quote I got 12 months ago exit fees

 

Ah that makes sense

 

If you want peace of mind fix. If you have a fixed income or fixed expenses or if you can only just afford the payments fix.
If you are trying to time the market, wait until the first couple of variable and fixed rate moves upward, then fix.