should we do fixed rate 2.99% or variable 3.x % ?

Discussion in 'Loans & Mortgage Brokers' started by andy ngo, 3rd Oct, 2019.

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  1. andy ngo

    andy ngo Well-Known Member

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    St george bank offer 2.99 fixed rate. Since the interest rate cut, I am not sure whether we should choose fixed rate or variable rate?

    thank you
     
    andy ngo, 3rd Oct, 2019
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    do you think rates will drop further? Or go up even?
     
    Terry_w, 3rd Oct, 2019
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    Morgs likes this.
  3. Morgs

    Morgs Well-Known Member Business Member

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    The fact they've got that rate (or better for lower LVR%) spread up to 5 years probably suggests their outlook is that rates are going to be low for a while.

    There will be variable rates close to 3% flat for OO across a number of lenders with the latest cut. If another rate cut presents that is even partially passed on they will likely be lower than 2.99%.

    At the end of the day as Terry says.... you got to pick a position based on what you think will happen!
     
    Morgs, 3rd Oct, 2019
    #3