Are people still looking to fix their rates ?

Discussion in 'Loans & Mortgage Brokers' started by Jeremy86, 1st Jan, 2022.

Join Australia's most dynamic and respected property investment community
?

Are you fixing any of your loan?

  1. No

    5 vote(s)
    33.3%
  2. Yes / partially (split)

    10 vote(s)
    66.7%
  1. Jeremy86

    Jeremy86 Active Member

    Joined:
    18th Jan, 2017
    Posts:
    25
    Location:
    Windsor, Brisbane
    Apologies if there is another thread which I could not locate (please direct me to it if so)

    Although we have missed the bottom, and given the low variables on offer, are people still fixing their rates for the lowest they can negotiate ?
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,599
    Location:
    Gold Coast (Australia Wide)
    Varies a lot depending on what peops are looking to achieve

    Mid term fixed rates ( say 3 years) have gone up by an average of 80 pts or so with some lenders.

    There are still some around with " old money", that is they have funds from bonds raised before the recent rises, but most lenders are now on the new money.

    If one has a large portfolio relative to income, and say a 4 % variable rate would make things tough, then a fixed in the mid 3s might make some sense for rate surety.

    If its an attempt to beat the banks at the variable rate game, thats a less sure outcome, Id guess the current fixed rates have variable rate rises built in, and one would be paying the higher fixed rate from the time of switch.

    ta
    rolf


    ta
    rolf
     
    Cousinit likes this.
  3. Morgs

    Morgs Well-Known Member Business Member

    Joined:
    7th Dec, 2017
    Posts:
    1,791
    Location:
    Sydney NSW
    Still a decent proportion of people locking in/having a fixed split from my perspective.

    When fixed rates were low it was about locking in a lower fixed rate than what was available in variable. Different conversation now though. Variable rates for many lenders have now dropped at the same time as fixed going up, so the conversation is often more about protecting oneself from potential rate increases over the fixed term.
     
  4. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

    Joined:
    23rd Aug, 2015
    Posts:
    1,546
    Location:
    Bella Vista
    Yep, the conversation for fixed rates have decreased, however the conversation is still there, Especially for investment loans where some may want a set and forget loan and want to hedge against any rises.