Best time to fix rates?

Discussion in 'Loans & Mortgage Brokers' started by Jmillar, 5th Mar, 2020.

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When is the best time to fix rates?

  1. Now

    2 vote(s)
    13.3%

  2. After one more drop

    2 vote(s)
    13.3%

  3. 6+ months

    5 vote(s)
    33.3%

  4. Never

    6 vote(s)
    40.0%
  1. Jmillar

    Jmillar Well-Known Member

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    What is the consensus on best time to fix rates given what's going on at the moment?
     
    Jmillar, 5th Mar, 2020
    #1
  2. Brady

    Brady Well-Known Member

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    When it meets best your own personal criteria.
     
    Brady, 5th Mar, 2020
    #2
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  3. Lindsay_W

    Lindsay_W Well-Known Member

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    When rates are moving in an upward direction
     
    Lindsay_W, 5th Mar, 2020
    #3
  4. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I've been watching interest rates for over 20 years, been in the mortgage industry for 16 years. I have an investment portfolio and quite a few loans, some fixed, some variable. I've seen booms, busts, rates going up and down. I've been ahead, been behind on my rate predictions. I've observed some of the nations top economists. Here's what I know for certain...

    Most people can't make a reliable rate prediction beyond about 3 months.

    If you feel rates are near the bottom, by all means fix. Be prepared to live with the consequences, good or bad. If you can't, stay on variable.
     
    Peter_Tersteeg, 5th Mar, 2020
    #4
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  5. Guest

    Guest Guest

    Guest, 5th Mar, 2020
    #5
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  6. Morgs

    Morgs Well-Known Member Business Member

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    100%.. there is so much more to it than just the rate & you'll only get opinions from people who can't speak to your circumstances.

    What I would say is if you are fixing make sure you get it through the right lender at the time as there can be a huge spread. I saw one last week which had been fixed with "Lender I" at 3.75% when at the exact same time they took out the loan "Lender S" had the same term fixed loan for 2.89%. Not ideal!
     
    Morgs, 5th Mar, 2020
    #6
  7. Guest

    Guest Guest

    On this... here is a chart with the annual inflation rate, if there was a rate hike during the quarter it appears in red (I marked it at the 3% level to make it easy to see when they start hiking relative to their target).

    upload_2020-3-5_11-59-31.png
     
    Last edited by a moderator: 10th Oct, 2021
    Guest, 5th Mar, 2020
    #7
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  8. Scott No Mates

    Scott No Mates Well-Known Member

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    I'd usually fix at 2:37pm because I like that time. Not much research involved :confused:
     
    Scott No Mates, 5th Mar, 2020
    #8
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  9. Ardi

    Ardi Well-Known Member

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    I'm fixing now on 5yr IO and 3yr fixed as it suits my circumstances. Fixing 3x loans and taking one from P&I to IO is saving me around 16k per year on current rates. This will make properties well and truly positive.
    Given we are buying PPOR this year, it will assist with putting as much cash as possible into this.
    Stability is key for us as we have had a significant setback in life last year. So my wife will be off full time work for another year or so.
     
    Ardi, 5th Mar, 2020
    #9
  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Lets see how QE goes :)

    ta

    rolf
     
    Rolf Latham, 5th Mar, 2020
    #10
  11. Scott No Mates

    Scott No Mates Well-Known Member

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    Did you fix?
     
    Scott No Mates, 5th Mar, 2020
    #11
  12. Ardi

    Ardi Well-Known Member

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    Any more people looking at fixing with the state of the economy?
     
    Ardi, 14th Mar, 2020
    #12