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?
     
  2. Brady

    Brady Well-Known Member

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    When it meets best your own personal criteria.
     
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  3. Lindsay_W

    Lindsay_W Well-Known Member

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    When rates are moving in an upward direction
     
  4. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member 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.
     
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  5. Joseph

    Joseph Well-Known Member

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    Brisbane04 and Lindsay_W like this.
  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!
     
  7. Joseph

    Joseph Well-Known Member

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    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
     
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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:
     
  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.
     
  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Lets see how QE goes :)

    ta

    rolf
     
  11. Scott No Mates

    Scott No Mates Well-Known Member

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    Did you fix?
     
  12. Ardi

    Ardi Well-Known Member

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    Any more people looking at fixing with the state of the economy?