To Fix or not - that is the question

I had planned to fix a couple a few weeks back - put it off as you do - I'll do it tomorrow which turned into two weeks and then Whammo CBA lists rates effective immediately. At the time I could have got 3 years for 4.29 same as my current variable rate.

Now the option is 4.69 2 years or 4.79 for? That is a 1/2 a percent on my current rate.
My OO loans are 3.87 and 3.92 with current fixed rates being 4.44 2 years and 4.54 for 3 - so up to .6 higher.

Is the general sentiment that IP IO loans will increase further this year and next?
is this the same with OO IO?
Has anyone else fixed - paying more now with the aim of not paying a lot more later? Or to have 3 years of stability by way of known rates?

 

I don't think PPOR rates will go up significantly unless they're IO - and the rises will be less than for IP IO.

You've got great discounts on your rates so I wouldn't worry too much for now - it'll take you around 2-3 rises to break even so for me it's not worth it UNLESS you think rising rates will cause you financial stress.

 

Hiya

Double check those rates - the 2 year fixed should be lower than that (even based on IO repayments).

Agree with Jess though - you have a decent discount off the SVR already.

Cheers

Jamie

 

There are still some decent investment, interest only fixed rates going, 2 years at 4.05% with Virgin stands out. If you are going with a bank that has not yet moved fixed rates, you probably want to pay a rate lock fee ASAP!

 

i'm with CBA too, current invesment loans are at 4.44% for those set up last year, 4.64% for the one set up this year. online it gives me the option of 4.84% for 2 years or 4.94% for 3 years for them all.

 

Thanks for the responses. We won't be under stress if they rise. OO is IO. If banks pass on 0.25 as flagged today - that would take my 4.24 t0 4.49 - one rise off the 2 year fixed.

 

Mine has just jumped up to 4.44% 2 days ago from 4.18% variable with cba. I'm also contemplating fixing.. probably for 3 years at 4.79%. I was also too slow and missed the boat with fixing at 4.29%. Oh the decisions..

 

Actually, correct me if i'm wrong, but have cba dropped their fixed interest rates?? Fixed rate home loan - CommBank

 

Remember the talk all the time of record low interest rates ? well that has passed.

There are a number of people fixing, it will depend on how many places you have and how you like to budget & how many will be going from IO to P&I

It is all a question of cash flow and budgeting, I kinda like low rates and know what I am up for in an environment that looks more like a likely to rise type of environment.

Do people really think, for instance, that banks will not continue to find ways to keep profits up ? or pass on govt taxes ? and further banking requirements ?

But it also makes sense to look at what you have, if your PPOR is 70LVR & P&I and your on 3 something, that is a far cry from many Investment rates that are at or around or even over 5 *already*

PS only recent that banks are having one rate for investment and one for home, that may be the norm soon for many ?

 

Still the same from the last increases - the interest rates quoted on the website are for P&I investment fixed rates, not IO.

 

Yeah, what is old is new again, it is like many workplaces, they have a roundabout where the same old ideas turn up over and over.....

 

right - i bit the bullet and fixed 3 IP loans today. the variable rate and rapidly risen and is now higher than the 2 year fixed rate of 4.84% with CBA

 

My inv IO are now 4.79
MY oo IO are now 4.47
CBA site only has P&1 rates - does anyone have the current CBA IO fixed rates?
My head hurts when I read the P&I or IO threads - I am not sure what to do moving forward.

 

Were these IO?

 

Cba are currently competing with the WBC and NAB 2 yr fixed for P&I at 3.88% - existinglending won't get that but pretty close.

 

Yep IO 5 years

 

What is CBA offering for existing lending? What is everyone getting now?

 

I am not sure they could sound the horns any louder.......

"P&I"


If your on IO , then fix, or look at a calc including years of loan to run, and look at difference,
t may be worth changing to P&I and taking up a fixed offer.

 

I just fixed on ofmine IP P&I at 3.92 for 2 years. Was 4.78 before that.