Fixed mortgage rates moving?

Just checking in if you know about any of the Australian banks moving their fixed rates up since the Trump election?

I saw on CNBC this week that 30 year fixed in the USA is now 4.05% up over a 1/3rd of a percent since the Trump election and 19T wiped off bonds (eg lending costs going up dramatically)

To give you an idea how big a difference that makes.....for us we locked in at 3.5% earlier this year eg if we didn't refinance in early 2016 the 0.55% difference on a $975,000 mortgage its around $5400pa (or about $A135pw just in interest) if we were buying today.

The reason I’m asking is we have bought an apartment in Allawah that is settling on the 3rd of February (Westpac 5 year fixed at 3.85%) worried that maybe I should pay the lock in fee seeing settlement is so far away.

Any thoughts? (or better still inside knowledge?)

 

And it's tax deductible.

 

The US yield curve has shot up - that does have an impact on global rate movements and a knock of effect to Australia's fixed rate market which is more heavily tied to international funding sources than variable rate mortgages (depositors make up a large chunk of this funding).

This usually does begin translating into the pricing of fixed rates, so its good research to have on hand. If your worried, pay the rate lock fee.

Its a decent risk mitigation investment at a reasonably small cost. As an aside, consider whether 5 year fixed is the best product for you - its a long fixed rate and a lot can change personally that may impact your lender (e.g. equity pulls, valuation differences, etc). Decent lender to be with to do a long term fixed option though.

 

Thanks all, we locked in 70% @ %3.85 today.

We'll use the variable portion as offset to pay down our LVR over the next 12 months and use as deposit on the next place end of 2017

 

yep 0.1% of the fixed loan portion.

Basically if the 5 year moved more than 0.02% it would have cost me money.....and its probably not going to move at all but as we aren't settling until Feb 2017.....thought it made sense just in case.

 

lol....I should send Trump the bill. It's all his stupid fault

 

Just locked $1,500,000 for clients at 3.80% for 5 years with Westpac.


Noted ING up 0.30% on 3 and 5 years rates from tomorrow.

 

Dang. I was eyeing off their fixed 3.97% p.a (INV) and 3.74% (OO) fixed for 5 years for 2 of my loans.

EDIT: that OO rate was 3.84%

 

It's already start. RAMS did it today.

Westpac's RAMS raises fixed home loan interest rates

 

It's all over the place. Some lenders increase their fixed, other decreased

 

oooh! Who has decreased?

 

In general some of the fixed rate have bumped rates up a bit (not down). It would be worth considering paying rate lock fees if concerned about a higher fixed rate.

 

Suncorp reduced some fixed (1 and 5 years) while not changing and increasing others.

Other lenders have increased rates but most didn't move yet it seems.

 

Any idea if its possible to get yesterdays fixed 5 year rate at ING?

 

Nah it's gone up now.

Managed to frantically get 4 rate lock forms in by 5pm yesterday.

 

I have not part fixed before, but been thinking about it on the way down to do so when it turns.

What are the advantages/dis advantages of fixing part of loan ?

You can keep all the variable features ?
Does it provide any benefits as far as breaking or selling, or is it as I imagine that is whatever ratio of fixed to variable is ?

I want to keep offsets on some accounts, if rates do rise, breaking should be no real costs.

 

get some spefic advice. most lenders dont have variable features to their fixed loans. having part fixed and part variable doesnt negate all of the flexibility issues with fixed rates, it just means you can repay/offset against the variable rate portion. If you have more than one property, Id suggest fixing 80% of half your properties rather than half/part of each. Means you can shop the properties on variable to another lender without breakcosts

 

The ones I would fix are with lenders I would not move from, so the only potential is if wanting to sell, but I also want to use the offset feature on them, so basically calculate what may go into offset for the fixed term & keep a similar amount as variable would be good idea ?

I know it is loan dependent, buy break costs if rates rise or stay similar should be negligible with major lenders ?