RBA cuts rate to 0.75%

Haven't had my monthly repayments adjusted since 9.2% variable.

 

ANZ’s press release isn’t clear. What do OO paying on IO get? And investors on P&I?

 

Call that a mortgage cut? In Denmark the banks are paying you to borrow, so why not here?

 

I play the rate game, each time it moves down I pay an extra $200 each fortnight.

Each time it move up I add extra $400 to fortnight payment.

each time banks send me a letter said rate drop you can reduce your payment I increase another $200 to extra payment each fortnight and when I got too much dividend I added another couple hundred bucks to the repayment bucket each fortnight

And this number doesn’t get reduce it always goes up, I am now paying 6 times the amount I required to pay

my 30 years loan are in its 5th years and will be paid off in 2 years time

This dividend season I am thinking of doubling up the repayment and paid it off in a year or less.

I also have an offset that nearly match the loan amount so I pay bugger all interest all my payment are just principle repayment.

Need a massive share crash in a year so I can deploy surplus cash

 

Feeling a bit silly for fixing over $2m for 3 years early in the year on investor IO at 4.19%! Oh well live and learn.

 

Wow, you so rich...

 

Though Shalt Not Fix

 

@euro73 , for rates such as 2.89% P&I at <=70% LVR , is that based on the bank valuation of the property value or market value?

 

Loan size

 

The loan size is a constant but the value of the property is not, right?

The property value can be different depending on who's doing the valuation. So if the bank evaluates the property at lesser than market value then the LVR will be higher.

Hope that makes sense. The reason i'm asking is because if the bank evaluates the property for lesser than what one thinks, then the person might not be able to get the aforementioned rates.

 

The loan needs to be 70% or less than the value of the property for the lower rate.
And yep often the bank's valuers dont think it is worth as much as the owner thinks it is so this could effect rate if the LVR is around that 70% mark

 

I like this! Need to start employing something similar to the non deductable debt

 

"Here's a list of the lenders that are passing on the Reserve Bank's cash rate cut. Some lenders are passing on the full 0.25% cut immediately, some have specified a future date their cut will take effect and others are passing on some of the cut.

We are updating this list every time another lender announces a cut."

https://www.finder.com.au/lenders-dropping-rates-rba-october-2019-cut

 

Bank Val. Loan Size = LVR

 

That's still not horrendous - the fixed IO INV rates were about 0.75 below the variable previously so you're only just out of the money now.

 

could you explain what I'm looking at here?

 

Thanks it makes me feel a bit better. I was on 4.79% so only got a 0.6% reduction for fixing. I think given what appears to be another inevitable cut in rates I will probably be about 0.3 to 0.4% the wrong side of things which will equate to about $10k per annum in extra interest