Join Australia's most dynamic and respected property investment community

I'm glad that I fixed my loan for 5yrs.

Discussion in 'Property Finance' started by Abooking, 19th Aug, 2015.

  1. Abooking

    Abooking Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    52
    Location:
    nsw
    This year I fixed my Investment home loan at 4.59% for 5 years. Recently the bank raised their rates for Investment loans by .27%. Under my current 'package' (with the discount) if I had not fixed and chosen variable I would currently be paying 4.85%. Without the package discount I would be paying 5.65% for the standard variable rate.

    I envisage that rates will continue to rise in a year or 2 and thus believe that fixing my rate was a sensible decision to make as I know that I will not be selling my house or re-financing in the next 5 yrs. Also fixing allows me to control my cash flow situation and have certainty about my monthly budget.

    Many people will say it is hard to beat the banks- when it comes to fixing rates. In this case I disagree. Whats your opinion...

    cheers
     
    Sunstone and JacM like this.
  2. spludgey

    spludgey Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    679
    Location:
    Sydney
    upload_2015-8-19_13-28-28.png

    Now, if only I qualified for loans with them...
     
    wombat777 likes this.
  3. sumterrence

    sumterrence Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    172
    Location:
    Sydney
    w
    wow what are the conditions?
     
  4. Veech

    Veech Active Member

    Joined:
    19th Jun, 2015
    Posts:
    34
    Location:
    melbourne
    What would be their cashout/equity release policy. I m sure the brokers here will confirm
     
  5. spludgey

    spludgey Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    679
    Location:
    Sydney
    Don't know.

    Who cares at that rate? APRA should have blown over in 2 years, so just switch lenders if their policies are bad.
     
  6. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,554
    Location:
    Melbourne, Australia
    OO loan it is
     
  7. spludgey

    spludgey Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    679
    Location:
    Sydney
    upload_2015-8-19_14-29-39.png
     
    No Probs likes this.
  8. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,584
    Location:
    Adelaide, SA
    Pretty deadly rate after the 2 yrs
     
  9. Perthguy

    Perthguy Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    4,701
    Location:
    Perth
  10. spludgey

    spludgey Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    679
    Location:
    Sydney
  11. Perthguy

    Perthguy Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    4,701
    Location:
    Perth
    That rate is so yesterday! :)
     
  12. spludgey

    spludgey Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    679
    Location:
    Sydney
    It's sooooo last Sunday!
     
  13. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker

    Joined:
    18th Jun, 2015
    Posts:
    641
    Location:
    Sydney
    Which lender is this?
     
  14. Plucka

    Plucka Well-Known Member

    Joined:
    30th Jul, 2015
    Posts:
    137
    Location:
    Brisbane
    My opinion is you made a mistake as I cannot see any conditions occurring in the next few years that will cause rates to rise. I can see another cut or two in the short term before staying low for quite some time. Also you can never say you will not need to sell within the next 5 years, everyone says that but the unexpected happens and the break costs can be costly.
     
  15. tobe

    tobe Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    885
    Location:
    Melbourne
    go back to somersoft and check out the 3 and 5 year fixed rate thread. It was at least 3 years old. check out some of the predictions and the rates as they moved.
     
    RetireRich101 likes this.
  16. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,554
    Location:
    Melbourne, Australia
    Perthguy likes this.
  17. B-Man

    B-Man Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    55
    Location:
    SA
  18. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker

    Joined:
    18th Jun, 2015
    Posts:
    641
    Location:
    Sydney
    Using westpac as an example - what do you do when you fix the loan and they make policy changes like no negative gearing, tightening of servicing, reduced LVR, etc and then you want to pull out equity because you want to go again?

    Often its not about pricing but about the equity that you are saying caio to.
     
  19. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    Why such a difference to the comparison rate (1+%)? Fees?
     
  20. tobe

    tobe Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    885
    Location:
    Melbourne
    Because the variable rate is a lot higher and it's done over 25 years, not just the first 2.