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

In same boat but fixed in April 2019 for 3 years. Still works out cheaper to break and refix for me.

 

interesting, will have to investigtate

the 6 month holidays some of the banks started to give are intersting too

 

Me too. Called CBA and broke two loans from fixed to variable

Inv loan break costs approximately 0.32% and OO loan same break costs 0.32% of loan amount. Both loans > $500k. Break costs have been capitalised on the loan.

New lower fixed rates available from 30 March onwards. So right now loans reverted to variable rate.

Will have to call them again on 30 March to re-fix. Was bit unsure what if CBA decide to change their mind and say fixed rate will be 2.49% instead of 2.29% come 30 March. But it is a risk worth taking.


cheers
Oracle

 

Fixed in the past. Never betting against the bank again!

 

What was the remaining fixed period on those and the rates? Just curious.

 

Both loans were fixed in last 6 months for 3 years. So around 2.5 years remaining give or take a month or two.

OO was P&I 2.89%
Inv was P&I 3.34%

At the time of fixing both rates looked attractive.

Cheers
Oracle

 

Any news from anz where they will cut their investor fixed rates as they were at 2.88 for 2 yr fixed prior to the rba news

 

My current rate on fixed OO PI loan is 3.89%, 2 years remaining, the break fee they offered is approx. 1.8% of the balance. I will likely proceed with breaking it as works out cheaper anyway. Also seemed attractive rate at the time of fixing .

 

Looks like they are cutting 15bpts for all variable rates, and doing a really sharp O/Occ P&I 2 year rate , but no changes to investor fixed rates

 

It changes daily pending on the market, cost of funds etc.
Same with every bank.

 

oh so sad but oo at 2.19 is really nice

 

Dumb question. If you fix a mortgage:

1. can you pay extra?
2. have an offset account?
3. pay it off early?

Just asking cause i want to fix my debt as the rate is lower than my variable rate, but I have the option to pay off everything in full later down the track if **** hits the fan.

 

Can I suggest to all, before fixing their rates, wait for a while. The market 3-yr swap rate is still above 0.25%. I suggest waiting for the swap rate to come down closer to the official cash rate before pushing ahead.

This is to avoid paying break costs if for any reason you have to break the fixed rate loan in the future. This is on the basis that the cash rate remains at 0.25% in the next 3 years at least, as intimated by the RBA Governor.

If you don't understand what I mean, please read the T&Cs of your loans.

 

1. In general FR loans have a maximum amount of penalty-free extra repayments during every 12-month period. It differs between banks/products, as usual read the fine print!

2. In general FR loans cannot be offset.

3. You can pay out early, but a break cost might* apply, i.e. if market interest rates go down between settlement and early payout.

 

Are the banks still offering money to investors to refinance?

 

I could be wrong but I reckon the impending recession won't last very long.