Margin Loans home loan below 2%

I'm looking refinancing my home loan, a lot lenders out there are offering good rates at the lowest i've seen is ING with 2.09% fixed term rate.

i understand no one has the crystal ball or can predict what's going to happened in future scenes, but based on the current scenario do you think interest rates will drop below 2%?

with recently being advised my working hours going to reduced i'm trying to save where ever i can.

my question is it wise to go with a variable rates now with no lock in contract then supposedly the rates did dropped below 2% in about a month or 2 times, then i will go with fixed rate.

let me know what's your thought.

 

You are asking whether fixed rates will go down, which is very different from variable.

 

loan size 360K, yes it is for owner occ, ING because they offered the lowest rates?

 

yes, will the fixed go below 2%? and should i go with variable now and hoping when fixed goes below 2% i will lock it in.

 

preferably lenders offer offset account too, when you said something bit more flexible such as?
sorry this i my 1st year owned a property still learning a lot in this industry.

and my LVR is below 80%.

 

I haven't really liked ING for quite some time. They do have cheap rates, but those rates tend to get more expensive fairly quickly. When you go back later and ask for the rates to be repriced, they're not very generous.

In essence the cheap loan doesn't stay that way.

Granted a lot of lenders do this, but ING tend to be a fair bit worse than others in my experience.

Also the post settlement services tends to be very clunky.

Overall I'd pay an extra 0.1% now knowing that it would likely be more cost effective in the long run.

 

I would personally refinance to one of the major banks that offers rebate. Most majors offer fixed rates at 2.29%, the extra 0.2% you save with going to ING on a 360k loan will not outweigh the rebates offered. Rebate ranges from 2-4k.

 

do they also offer variable with rebate?

 

First port of call would be making sure you service with whichever lender you're looking at. If your hours have been cut then unfortunately that will be a barrier for some.

 

ING do offer variable rates which are competitive, but no rebates. They were conservative before the crisis, now they're ultra conservative. Qualifying for a loan with them is going to be tricky.

 

Yep just today, client has PPOR Variable sub 80% with ING = 3.71% P&I, not happy.
Also to get the 2.09% fixed rate, you need to be on an 'Orange Advantage Package' which means you have to split the loan and keep a minimum of $30K Variable - not a huge deal for some, but for those wanting to fix the total loan it's not clear on their advertising.

 

I think ANZ does 2.19% for 2 years. Like most things, you'll never be able to pick the bottom of the cycle. What if you fix at 1.98% in 6 months and then it drops to 1.57%? Who saw covid coming?

Only fix for two reasons:
1. Repayment certainty and cash flow management.
2. Lower interest costs compared to variable (at least to begin with)