CBA increases rate

Discussion in 'Loans & Mortgage Brokers' started by jins13, 22nd Oct, 2015.

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  1. Befuddled

    Befuddled Well-Known Member

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    Befuddled, 23rd Oct, 2015
    #61
  2. sandyfeet

    sandyfeet Well-Known Member

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    love it..... a 'frenzy'
     
    sandyfeet, 23rd Oct, 2015
    #62
  3. Kashmir

    Kashmir Well-Known Member

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    NAB has just announced an increase
     
    Kashmir, 23rd Oct, 2015
    #63
  4. MichaelW

    MichaelW Well-Known Member

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    I disagree. But that's because I don't fix rates to try and "beat the bank", but to lock in my servicability picture. I've locked most of mine away at 4.99% for 5 years about a year ago. Sure that means I'm paying about $500 a month more today that if I'd left them variable, but I know that in three and four years time I'll be paying the same manageable monthly repayments. And by then, my rents will have gone up 5 times...

    For me, the longer you can fix them at a really decent rate the better. I'm not gambling with the banks, I'm committing my strategy for the long term and managing my commitments.

    Cheers,
    Michael
     
    MichaelW, 23rd Oct, 2015
    #64
    Ted Varrick and Gingin like this.
  5. Redom

    Redom Mortgage Broker Business Plus Member

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    Great way to look at it Michael - you sound like you've made a well reasoned decision.

    Nothing wrong with fixing it if you know why your doing it and understand the full risks/benefits of doing so.

    In general, having some structure to the decision may help (like you've done). You've outlined some of the pro's.

    In terms of costs, it does definitely limit your financing flexibility which may need to be considered as part of your overall investment strategy.
     
    Redom, 23rd Oct, 2015
    #65
    Sam Yue likes this.
  6. timetoact

    timetoact Well-Known Member

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    We were paying ~9% pre GFC (only 7 years ago)
    I struggle to see how it will get back there in the short - medium term but have almost no doubts that it will be back there at some point in the future.

    Hoping we don't (and pretty sure won't) see the high teens that were around in the 80's though.
     
    timetoact, 23rd Oct, 2015
    #66
    Ardi likes this.
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