Is anyone fixing soon?

I will be fixing a broken light soon

 

I don't really get it either. I had to google it yesterday

I get the concept that there are often hidden fee's and other charges not reflected in the interest rate, and that is supposed to be what the comparison rate shows. But why is CBA's so high (5.3 comparison for a 4.49% rate). I can't imagine what these fee's are that would bring the rate up so much. Isn't it based on a sample loan amount and term that they are supposed to disclose with the comparison rate?

 

Comparison rate in fixed rate loans simply means they assume you will revert to their standard variable rate after the fixed period and the rate is calculated on the basis of you staying with them 25 years.

In other words, a comparison rate for a fixed rate loan is next to useless but legally required for disclosure.

 

Yes I plan to fix all my loans asap but will use the following strategies:

1) I will stagger them out so they don't all come off being fixed at the one time (so a mix of 3, 4 and 5 year terms)

2) I will keep a small part of each loan variable (like 10%) in case I manage to pay down my PPOR within the next year or two so I have other places to park any excess cash

 

Think it's 30th

 

What?!? This post says Aug 10?

https://propertychat.com.au/community/threads/cba-has-done-it-too-27-points-august-10th.1810/

 

For the fixed rate. I'm rushing now doing a rate lock so I don't miss out

 

Don't know what "comparison rate" mean?

 

ashalim, I've got to ask the tough questions

 

Don't bother with comparison rates.

You know your fees and other costs, and are smart enough to make the comparison yourself.

For a fixed loan, use the actual rate.

You have no control of the variable rate at the end of it, and if you don't like it then refinance is the option

 

Thanks Blacky yep got the rate lock done today. A bit pricey though.

 

Cost?

 

750

 

Fixing all the IP loans with ANZ for 2 years (I/O) at the moment.

I'd asked for 5 years I/O, but got told they'll only do 5 years I/O if I fix for 5 years

 

- We are increasing our Variable Rates for new and existing Investment Home Loans by 27 basis points effective from Monday 10 August 2015.

- We are also increasing our Fixed Rates for new Investment Home Loans effective from Friday 31 July 2015.

Source:
https://www.commbank.com.au/news/rate-announcement.html

 

I just fixed 2 of my loans with Suncorp for 3 years at 4.29% so works out to be exactly what my variable was... I'll be doing the same thing for my other loan... Never fixed in my life, Really hope I'm making the right decision by fixing...

Any one else have 2nd thoughts about fixing?

 

There's a few reasons to fix now...
1) Rates for investors are only going up from here.... RBA & APRA have rung the bell.
2) If you do need to break the fixed rate it is unlikely to be expensive as rates are unlikely to be lower.
3) As an investor you're a lot less likely to be able to borrow more in the next 12-24 months anyway... YMMV.

Bottom line is consolidate now, and wait & see, & plan for when the lending situation improves.

 

Hadn't considered the last two points. Good ones.

 

After careful consideration I think I will fix my I/O loans with westpac.

The current variable rate (after discount) is 4.18% but this will be increased on 25 September by .27% to 4.45%.

However I can lock-in a fixed rate (after .2 discount) tomorrow for 5 years at 4.59%. After tomorrow (3 August) it goes up by .30% to 4.89%.

I hope that helps anyone else thinking about what to do (but remember that you need to act tomorrow to lock-in the fixed rate).

Tony

 

Emailed my request to fix with AMP on Friday. ...3 years for 4.55...seems a no brainer considering on variable it will go up to 4.97 and who knows where from there. Fixing 3 loans with them and not touching my others with Bankwest.