Its now pretty much taken for granted that rates will go up.the unknown is by how much? and when?
so given this information what reason would there be for not fixing the rate on your loans?
The reason for this post is i just spoke to my bank and i can fix my rate for five years for the same rate as im paying now the only change to my loan appears to be that i can only pay off up to 5000.00pa extra off my loan which is about all i intend doing. in this case it would seem i should defiantly be fixing it but im worried theres something im missing. the bank is ANZ
I am also with ANZ. On the breakfree package. Not to useful those guys. I’m thinking of going fix early next year. Maybe 1st or 2nd quarter. Do you know there fixed rate at the moment?
Hi Falcon
I believe that if you set your rates then if u pay it off faster or need to refinance due to buying more properties, or equity, whatever the reason may be you may find fees and penalties applying.
I hope this helps, maybe one of the mortgage brokers on the forum can help you a bit more.
Regards Bear
Currant fixed rate as advertised on their website is 6.60% for 5 years.
only incurr charges if you try to pay over the 5000.00 per annum extra payment tolerance during fixed peroid, you make a good point BEAR1994 about refinance charges as i will posibly restructure during this peroid to buy more investments
It would have been better to fix rates with ANZ 2 months ago before they put them up. However, clients of mine with ANZ breakfree and professional package have been asking me of late should we fix or not?
My opinion is mixed. If you want to refinance and purchase more property, hold off from fixing because of the costs involved.
However, there are some reasons why I personally wont fix.
1. election looming
2. the AUD is soaring and to control it, interest rates will have to stay on hold
3. $7bn surplus means future govt. borrowing will be kept to a minimum thus, private sector and public sector won’t have to fight for fundsThats my opinion anyway
It would have been better to fix rates with ANZ 2 months ago before they put them up. However, clients of mine with ANZ breakfree and professional package have been asking me of late should we fix or not?
My opinion is mixed. If you want to refinance and purchase more property, hold off from fixing because of the costs involved.
However, there are some reasons why I personally wont fix.
1. election looming
2. the AUD is soaring and to control it, interest rates will have to stay on hold
3. $7bn surplus means future govt. borrowing will be kept to a minimum thus, private sector and public sector won’t have to fight for fundsThats my opinion anyway
Some educated comments there George – well done.
FYI – One lender (Heritage Building Society) allows borrowers to make unlimited repayments on a fixed rate. Plus they also give you access to redraw (which is uncommon).
See: http://secure.heritageonline.com.au/LOANS/loans.html
I did a study on fixed rates over the last 10 years to see who is better off. Variable wins (especially if you don’t pay the standard variable)
See article titled “Fixed Rates – Who Wins? Borrowers or Lenders?” on left hand side: http://www.prosolution.com.au/free_articles/free_articles.php
Cheers
Stu
I won’t deal with Heritage. I supplied an application with complete documentation and the BDM from Heritage told me he would give me an answer in 6 hrs for my client. 13 days later, still no answer so I collected the application, walked half a block to CBA and had it approved in 36 hrs. No problem.
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