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

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

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  1. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    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
     
    Rolf Latham, 19th Mar, 2020
    #1
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  2. Gen-Y

    Gen-Y Well-Known Member

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    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.
     
    Gen-Y, 19th Mar, 2020
    #2
  3. big_ben02

    big_ben02 Well-Known Member

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    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?
     
    big_ben02, 19th Mar, 2020
    #3
  4. Never giveup

    Never giveup Well-Known Member

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    Mine coming off in Nov and Dec ;(
     
    Never giveup, 19th Mar, 2020
    #4
  5. spludgey

    spludgey Well-Known Member

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    I just fixed $2.5m...
     
    spludgey, 19th Mar, 2020
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  6. Never giveup

    Never giveup Well-Known Member

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    At what rate and with who?

    I am with CBA
     
    Never giveup, 19th Mar, 2020
    #6
  7. spludgey

    spludgey Well-Known Member

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    $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%.
     
    spludgey, 19th Mar, 2020
    #7
  8. Rex

    Rex Well-Known Member

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    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
     
    Rex, 19th Mar, 2020
    #8
  9. Gen-Y

    Gen-Y Well-Known Member

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    Waiting for some announcement of under 2% rates.
    That is the time I will pull the trigger to lock some loan rates.
     
    Gen-Y, 19th Mar, 2020
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  10. Yson

    Yson Well-Known Member

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    But is variable higher than fixed rates now, as I am looking for 2 yr fixed from anz at 2.88, very attractive
     
    Yson, 19th Mar, 2020
    #10
  11. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    they coukd indeed.

    Hence peops need to do their own research

    t

    rolf
     
    Rolf Latham, 19th Mar, 2020
    #11
  12. Guest

    Guest Guest

    CBA doing 2.29% CBA Newsroom on Twitter
     
    Guest, 19th Mar, 2020
    #12
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  13. Yson

    Yson Well-Known Member

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    Last edited by a moderator: 10th Oct, 2021
    Yson, 19th Mar, 2020
    #13
  14. Rex

    Rex Well-Known Member

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    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.
     
    Last edited by a moderator: 10th Oct, 2021
    Rex, 19th Mar, 2020
    #14
  15. paulF

    paulF Well-Known Member

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    Negative rates here we come?!
    Yup, fantastic for the ones who get to keep their jobs
     
    paulF, 19th Mar, 2020
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  16. Hetty

    Hetty Well-Known Member

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    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.
     
    Hetty, 19th Mar, 2020
    #16
  17. oracle

    oracle Well-Known Member

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    Or those whose tenants keep their jobs and keep paying rent.

    cheers
    Oracle
     
    oracle, 19th Mar, 2020
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  18. Rex

    Rex Well-Known Member

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    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.
     
    Rex, 19th Mar, 2020
    #18
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  19. euro73

    euro73 Well-Known Member Business Member

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    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
     
    euro73, 19th Mar, 2020
    #19
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  20. Tattler

    Tattler Well-Known Member

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    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.
     
    Tattler, 19th Mar, 2020
    #20
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