Fixed Rate loans..........

Discussion in 'Loans & Mortgage Brokers' started by Rolf Latham, 19th Mar, 2020.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    15th Aug, 2005
    Posts:
    7,538
    Location:
    Gold Coast
    FIXED rate Home and Investment loans

    NOT Advice, but for those with fixed rate loans, consider busting out to variable TODAY

    The RBA isnt having an emergency meeting to sing Kumbayah around a campfire.

    Suspect we will see 25 to 50 pts, with further on the horizon.

    All care taken but no responsibility accepted

    Share away.....

    ta

    rol
     
    Observer, Anne11, Morgs and 1 other person like this.
  2. Gen-Y

    Gen-Y Well-Known Member

    Joined:
    8th Nov, 2015
    Posts:
    877
    Location:
    Brisbane - Sydney
    I won't be fixing any rates till the dust settles.
    Good timing as I have 1 fixed coming off end of this month. Another fix at end of June this year.
    What lucky timing I say.
     
  3. big_ben02

    big_ben02 Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    100
    Location:
    Regional NSW
    Given the fixed rate break costs are determined based on movements in the underlying funding costs - wouldn't the break-cost be pretty big for anyone that fixed more than a month or two ago and therefore not worth it?
     
  4. Never giveup

    Never giveup Well-Known Member

    Joined:
    13th Oct, 2018
    Posts:
    711
    Location:
    Sydney
    Mine coming off in Nov and Dec ;(
     
  5. spludgey

    spludgey Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,579
    Location:
    Sydney
    I just fixed $2.5m...
     
    Codie and datto like this.
  6. Never giveup

    Never giveup Well-Known Member

    Joined:
    13th Oct, 2018
    Posts:
    711
    Location:
    Sydney
    At what rate and with who?

    I am with CBA
     
  7. spludgey

    spludgey Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,579
    Location:
    Sydney
    $1.6m with St George at 3.09% for two years.
    The rest with Bank Australia and TMBank at rates between 2.88% (PPOR) and 3.34%.
     
  8. Rex

    Rex Well-Known Member

    Joined:
    12th Feb, 2018
    Posts:
    813
    Location:
    Perth
    Lots of murmurs about odd movements in the credit markets, with bond yields rising in a concerning way. Credit could get more expensive as perceived risks increase with this crisis, even with the RBA and other central banks cutting to zero. I understand Aus banks fund their fixed rate products from credit markets, so it's even possible that the current low fixed rates on offer from banks could actually increase?
    cc @Redom
     
  9. Gen-Y

    Gen-Y Well-Known Member

    Joined:
    8th Nov, 2015
    Posts:
    877
    Location:
    Brisbane - Sydney
    Waiting for some announcement of under 2% rates.
    That is the time I will pull the trigger to lock some loan rates.
     
    Codie and Hetty like this.
  10. Yson

    Yson Well-Known Member

    Joined:
    4th Jan, 2016
    Posts:
    348
    Location:
    Sydney
    But is variable higher than fixed rates now, as I am looking for 2 yr fixed from anz at 2.88, very attractive
     
  11. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    15th Aug, 2005
    Posts:
    7,538
    Location:
    Gold Coast
    they coukd indeed.

    Hence peops need to do their own research

    t

    rolf
     
  12. Joseph

    Joseph Well-Known Member

    Joined:
    25th Jul, 2015
    Posts:
    1,450
    Location:
    AU
    CBA doing 2.29% CBA Newsroom on Twitter
     
    Anne11 and Rex like this.
  13. Yson

    Yson Well-Known Member

    Joined:
    4th Jan, 2016
    Posts:
    348
    Location:
    Sydney
  14. Rex

    Rex Well-Known Member

    Joined:
    12th Feb, 2018
    Posts:
    813
    Location:
    Perth
    I see the tweet - does this mean the new fixed rate on offer for 1, 2 and 3 year term is 2.29%? That is fantastic.
     
  15. paulF

    paulF Well-Known Member

    Joined:
    29th Jun, 2015
    Posts:
    1,074
    Location:
    Melbourne
    Negative rates here we come?!
    Yup, fantastic for the ones who get to keep their jobs
     
    Ketsle, HUGH72, mikey7 and 2 others like this.
  16. Hetty

    Hetty Well-Known Member

    Joined:
    27th Jun, 2015
    Posts:
    523
    Location:
    NSW
    I’m guessing it’s owner occupied 1 year only, because their owner occupied 1 year fixed was 2.99%

    edit: actually 2 year too. Investment looks like it’ll be 2.49. I think I will fix at that, we’re paying over 4% on our commbank IP loan.
     
  17. oracle

    oracle Well-Known Member

    Joined:
    16th May, 2007
    Posts:
    1,075
    Location:
    Canberra
    Or those whose tenants keep their jobs and keep paying rent.

    cheers
    Oracle
     
    paulF likes this.
  18. Rex

    Rex Well-Known Member

    Joined:
    12th Feb, 2018
    Posts:
    813
    Location:
    Perth
    So basically CBA are taking advantage of the RBA's commitment to keep the 3 year bond rate at 0.25%. So CBA are funnelling every man and their dog in to a fixed rate, while maintaining a healthy ~2% margin on those products. Also, I suppose by not dropping variable rate, the break cost for those on existing fixed products is not even that great?

    This could be transformational for the way that the retail mortgage market works - a big move away from variable rate products.
     
    JohnPropChat likes this.
  19. euro73

    euro73 Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    5,373
    Location:
    The beautiful Hills District, Sydney Australia
    no no no no no... fixed rates are coming down... a loooong way down. way lower than variable. . CBA has just dropped a 2.29% P&I into the market for 1,2 and 3 years. ING were already at 2.45%. AMP were already at 2.49%. More will follow in the coming days
     
    Rex and Lindsay_W like this.
  20. Tattler

    Tattler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    908
    Location:
    Sydney
    This is truly amazing deals. I have SVR loans, and some fixed loans that are due to expire in 3 months. I wonder if I should break those loans early to get a jump to these rates?

    I still have 1 loan that is 5 year fixed Investment IO loan at 3.99%, not due until Dec next year. I am asking my broker to see what the break cost would be.