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

Discussion in 'Loans & Mortgage Brokers' started by Abooking, 19th Aug, 2015.

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  1. Abooking

    Abooking Well-Known Member

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    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
     
    Abooking, 19th Aug, 2015
    #1
    Sunstone and JacM like this.
  2. spludgey

    spludgey Well-Known Member

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    upload_2015-8-19_13-28-28.png

    Now, if only I qualified for loans with them...
     
    spludgey, 19th Aug, 2015
    #2
    wombat777 likes this.
  3. sumterrence

    sumterrence Well-Known Member

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    w
    wow what are the conditions?
     
    sumterrence, 19th Aug, 2015
    #3
  4. Veech

    Veech Well-Known Member

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    What would be their cashout/equity release policy. I m sure the brokers here will confirm
     
    Veech, 19th Aug, 2015
    #4
  5. spludgey

    spludgey Well-Known Member

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    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.
     
    spludgey, 19th Aug, 2015
    #5
  6. Big Will

    Big Will Well-Known Member

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    OO loan it is
     
    Big Will, 19th Aug, 2015
    #6
  7. spludgey

    spludgey Well-Known Member

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    upload_2015-8-19_14-29-39.png
     
    spludgey, 19th Aug, 2015
    #7
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  8. D.T.

    D.T. Specialist Property Manager Business Member

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    Pretty deadly rate after the 2 yrs
     
    D.T., 19th Aug, 2015
    #8
  9. Perthguy

    Perthguy Well-Known Member

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    Perthguy, 19th Aug, 2015
    #9
  10. spludgey

    spludgey Well-Known Member

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    spludgey, 19th Aug, 2015
    #10
  11. Perthguy

    Perthguy Well-Known Member

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    That rate is so yesterday! :)
     
    Perthguy, 19th Aug, 2015
    #11
  12. spludgey

    spludgey Well-Known Member

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    It's sooooo last Sunday!
     
    spludgey, 19th Aug, 2015
    #12
  13. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Which lender is this?
     
    Shahin_Afarin, 19th Aug, 2015
    #13
  14. Plucka

    Plucka Well-Known Member

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    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.
     
    Plucka, 19th Aug, 2015
    #14
  15. tobe

    tobe Well-Known Member

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    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.
     
    tobe, 19th Aug, 2015
    #15
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  16. Big Will

    Big Will Well-Known Member

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    Big Will, 19th Aug, 2015
    #16
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  17. B-Man

    B-Man Well-Known Member

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    B-Man, 19th Aug, 2015
    #17
  18. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    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.
     
    Shahin_Afarin, 19th Aug, 2015
    #18
  19. Azazel

    Azazel Well-Known Member

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    Why such a difference to the comparison rate (1+%)? Fees?
     
    Azazel, 19th Aug, 2015
    #19
  20. tobe

    tobe Well-Known Member

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    Because the variable rate is a lot higher and it's done over 25 years, not just the first 2.
     
    tobe, 19th Aug, 2015
    #20
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