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  • Profile photo of YnotnowYnotnow
    Member
    @ynotnow
    Join Date: 2007
    Post Count: 24
    August 16, 2010 - 3:33 am

    Hi all , the 3 year fixed rate term on my loan is expiring in Sept. 2010 and to my surprise instead of a lower fixed rate and a new term ,i got told GE / AMS Mortgage Services isnt offering any fixed rates anymore at all …

    although i always knew the lender is obsviouly the one in power , i never expected it to be possible, that they could refuse to give me an option ,I would ususally expect from any lender.
     
    they have an unusual high variable rate already and told me they couldnt compete anymore ,so i would expect them to increase their variable rate whenever possible ,therefore i might have to refinance and pay the break cost etc etc, although thats the last thing i want …

    any thoughts on this …. is this normal ? any ideas how to handle the matter

    thanks

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    August 16, 2010 - 4:33 am

    GE pulled out of the Australian lending market about 18 months ago so i guess if they price themselves out of existance they are encouraging you to leave them.

    Interest rate tinkering is a tool used by all lenders depending on where there are in their desire to win market share.
    Look at Westpac's standard variable rate and you will see what i mean.

    Richard Taylor | Australia's leading private lender

    Profile photo of YnotnowYnotnow
    Member
    @ynotnow
    Join Date: 2007
    Post Count: 24
    August 16, 2010 - 4:51 am

    thanks for that and i wasnt overly surprised about them pumping up their rates but i didnt know they could refuse to offer any fixed rates

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