Shocking news today

RBA kept the rates the same.......shocking I tell ya

 

I can't believe it was the first Tuesday of a new month already.

 

We could start a book on when the increase (decrease if you're game ) will be!

 

Rates have been increasing for a few years now. Every new apra wave was an increase.

 

I'll play . How about RBA rate DECREASE within 2 years and multiple out of cycle rate rises by the big 4 in the same time period.

 

Does anyone think we should switch to a fix rate if the rates are potentially going to rise?

 

It depends. Not if you think you might want to sell or refinance during the fixed rate period.

 

@Angel is right. It depends on what your plans are for the property. I am holding 2 properties I want to hold very long terms. Since I decided to fix both loans, the interest rate on both loans has gone down. Lucky I didn't get around to it It is likely that I will end up fixing both though.

 

Good feedback. I’m definitely keeping my properties for long term. I’ll wait and see what the rates will be like next quarter as I’ve noticed my bank CBA has been increase the rate charged on my loans this year already.

 

How are the fixed rates looking?

 

Here’s a link to CBA rates guide as of March 2018:
Commonwealth Bank changes home lending fixed rates

I’m currently on 5.45% variable for an IO loan.

I’ll need to call the bank to get a quote for fixed rate.

 

Ouch! That seems high for a variable loan. My highest interest only loan rate is 4.69% but I can drop that to 3.68% if I go P&I, so I will definitely be doing that. I was planning to keep the IO for another 2 years but it is not worth it now.

 

3.68% P&I is really good. Is it INV or OO rate? Is it with the big 4? It also depends on the loan size I guess.

 

OO
ING
under $400k