Fix rates 2.59% for two years - risk of rates dropping further?

What might cause interest rates to drop even further?

 

I don’t know if they will go down further but I am happy with 2.59 rate. It is better than 4% and with no plans to sell nor pay these down it seems like a good option.

 

Sounds like a good idea to me.

 

I applied to break and do the same with all my Westpac loans last week.

Downside is I was advised it may take upto a month to process but:

1. Break costs quoted and calculated on day i decide to go ahead apply and
2. If rate changes in between now and the possible 1 month to get the paperwork out to me signed, returned and processed it tough luck!

 

I'm in a similar situation with CBA currently charging me 4.28% variable P&I or I can fix with them for 2 or 3 years at 2.84% P&I. These are investment rates. I think I will fix for 2 years as I don't think fixed rates will drop much more. Even if the RBA goes to 0% I don't think the banks will pass it all on.

 

If you are on the wealth package you can get 2.69 inv Pi fixed 1-3 years

 

Thanks for the info - I’m looking to break and re-fix. 1 month is ridiculous. I couldn’t get through to them on Friday and didn’t get a call back via their website either.

 

I was ringing for a week. Ended up registering for the call back which took 4 business days but they did call in the end. The guy was actually very informed and helpful.

The 1 month thing is a real issue for me. I calculated the benefit of reduced rate for renaming term of loans v breakcosts assuming a 1 week period to get on new rate. Waiting 1 month makes it marginal with the only real benefit being the break costs are tax deductible

 

Predicting the future is a bit of a guessing game. We fixed a large chunk of PPR debt 12 months ago at 3.69%, variable portion has come down to about 3.2%. Sure it would be better to have it all variable but we locked in a portion at that time for that certainty - not ideal now, but we've still got what we planned for. Lucky our employment in this environment is consistent.

 

Good point...the only reason I have just broke and refixed is because I thought 4.1% IO fixed was a great rate 12 months ago when I was paying 4.79 variable.

 

I thought wealth package gave you a .07% discount, not .15% ? My CBA loan is only 50k so it's still not worth paying $395pa to get a $75pa discount (50,000*.15%)

 

We've just fixed a couple of investment loan splits with CBA. Rate is so much better than variable and we have a need to be with CBA for this particular security.
Decided to just go 1year fixed though to hedge our bet. Not always just about the lowest rate though..

 

I just locked it 3 yr fixed pi with Anz at 2.49% as happy about it

 

I think the discount applies to variable.
The $395 serves me well for multiple loans and splits and Ive always had good rates.

 

Don’t forget the package fee is also generally tex deductible.

 

AMP today

 

Damn those are some good rates. I can't wait until we're in a position to be able to go P&I on investments. Should start seeing the snowball grow then!

 

Whats the variable rate that is 50% of the deal ?