Is anyone fixing soon?

@eng - apologies, broker talk getting the better of me!

It means that 5 year fixed rates have been moving up over the last couple months with many lenders increasing them (unlikely to be as a result of APRA intervention).

Cheers,
Redom

 

HI Guys,

Currently i'm with CBA and 4.15% now thinking Fixing for 3 years with 4.49% for my 1.1M Loans
( 50: 50 ) Any recommendation?


MI

 

I am in the same boat, thinking of fixing with ANZ ($850k combined) and Macquarie ($340k) but unsure if i should go with 2 years or 5 years. Currently paying not much better on variable rate anyway.

 

One thing you may wish to watch out for with fixing is losing your current special discount with some banks. One bank told me i would lose my 1.2% negotiated discount off the SVR after the fixed period and have to renegotiate at the time. At the moment i would probably only get .7% discount so it may cost you in the long run. Always ask if this is the case before you fix.

 

We already have one fixed (stupidly) for 5 years @ 4.99% with commbank. Did that before we knew what we were doing on the advice of our broker.. 2nd IP is nearly finished being built, but unsure what we're going to do.. The next 2-3 years will involve buying our PPOR and 1st child, so some stability is what we're *potentially* covering would be good.

 

This is an aggressive discount from CBA 4.15% @ 1.1M. Mine is only 4.25% on same size loan.

I sent in my form to CBA this morning to switch to 3 year fixed for some. Only fixing on a Brisbane property, but leaving variable for the Sydney property, in case I need to sell in a year or 2

So your 4.15% rate becomes 4.42% in a 1-2 weeks.. I could be wrong, that next rate cut we only see the full being passed to OO.

 

Just fixed with Macquarie (before they put investor rates up).

Actually since it's an LMI loan, the fixed rate now puts us under the variable.

 

Heads up.

Swap rates (used to price fixed rate loans) have dropped like stones.

So you may actually be better of waiting for a little while before fixing.

 

I just fixed one loan with ANZ for 2 years at 4.59% :/ , very reluctant as i was paying 4.38% variable but who knows when they will do a Macquarie and increase variable rates for investors. I have a feeling this is what the banks want, forcing investors to fix due to the uncertainty, but then again i coudn't see the banks giving anymore discounts to investors even if RBA cuts the cash rate, due to APRA pressures. Next is Macquarie for me, 2 years is 4.49% i believe.

 

I thought ANZ already increased their variable by 0.27 on 23/7/2015 which and comes effect on August 10, just like Mac and CBA.

 

Does people feel their loyalty discount negotiated yesterday will be engraved in their VIP Loyalty card for lifetime?

I am thinking out aloud, that it won't, as economic climate changes calls for banks to adjust. For example, your negotiated 1.2% yesterday now becomes 1.2% minus 0.27% discount after banks increased 0.27%..

I am happy to come out of a fixed 3 year ( hoping APRA is done and dusted then) to renegotiate your variable rate. You need to engage a conversation with your broker/bank constantly for the discount, as product, service and discount changes. Who knows in 3 years time, 2% discount can be negotiated. Loyalty doesn't have much weight in banks and employment.

 

I think children have quite high NG potential (if you're running a business - lol) until their CG rises later in life; it's usually far longer than a property though

 

Hmm I didn't know that but I am not at all surprised, thanks for pointing it out.

 

Fixing is not such a bad idea after all..
I was advising customers to do so in March.

Maybe look at splitting or if you think you are going to hold a property for 3 years + I would look at fixing.

 

If you switch from variable to fixed with CBA to you lose the offset capability or can you still 100% offset a fixed loan?

Wealth package - its says customers get 0.15% discount on fixed. So if current 2 and 3 year rates are 4.49 then does that mean wealth package rate is 4.34?

 

I submitted a fix conversion for AMP borrowings yesterday as soon as my broker advised me of changes. Current fixed for 2 years is same as current variable so hopefully gets done before the rate ratchets take effect.

 

I thinking of fixing my 2 IP loans. For future purchase I'll pay down on ppor and take equity.

 

I just fixed my 2 CBA loans for 3 years at 4.49%. Fingers cross interest only loans are still available when I get out of fix rate

 

Is that with comparison rate?

 

I'd go ahead with fixing if I were you.

I've just fixed a portion of my loan for 2 years at 4.49% with cba also.

As of 31st July new fixed rates with CBA will be at 4.89%.