Fixed rate adjustment/Mortgage Holiday

Discussion in 'Loans & Mortgage Brokers' started by youngbuck, 28th Mar, 2020.

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  1. youngbuck

    youngbuck Member

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    Hi guys - I have a question for my fellow mortgage brokers/experts.

    What are the chances of your existing lender making an adjustment to your fixed rate to take advantage of the latest cut; as opposed to tapping in to the mortgage holiday? This looks like a viable option for a lot on this forum.

    Hope you’re all staying safe!
    YB.
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Zero :( or close to

    Because your lender has bough the cash from your super fund and have a contracted rate with them, and sold the product with their fixed margin

    ta
    rolf
     
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  3. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member Business Member

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    You're not going to get your fixed rate adjusted, but you can take advantage of the 'repayment holiday' with most lenders. Only use this if you really need to though.
     
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  4. paulF

    paulF Well-Known Member

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  5. Perthguy

    Perthguy Well-Known Member

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    I have a fixed loan at 4.09%. I'm not unhappy with the loan or rate but I asked about the break cost of of interest as there are much lower rates around now. Indicative breaks costs are $23,000. Not worth it. I would rather keep it as it is.
     
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  6. big_ben02

    big_ben02 Well-Known Member

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    If you're on principal and interest repayments but want to pay interest only for the next 6 months during the downturn (without applying for interest only) , can you take the repayment holiday where interest capitalises and just transfer enough for the interest each month?
     
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  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    if u arent fixed as a generality I would say yes, but best to check with ur lender, some are quirky as

    ta
    rolf
     
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  8. youngbuck

    youngbuck Member

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    Awesome feedback guys. I refixed the fixed portion of the loan at the end of Feb at 2.98% which at the time I thought was awesome. 3 weeks later we are in a pandemic and there has been another rate cut (Economic damage control).

    The joys of not being a fortune teller haha ‍♂️ I don’t need to take a mortgage holiday (touch wood) but thought it may have been possible to swing things given overall situation and short time 3-4 week time frame. Never hurts to try.