I beg the question, is it time to fix?
RBA keeping rates on hold and talk of banks increasing outside of the RBA decisons.
UBank have a 3 year 5.98% package that looks pretty good.
There are better 3 Year rates around than that if you want to go that route.
Must admit i wouldnt go the UBank route.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
How low do you think it will go .. and more importantly .. do you need to care?
If the rate is at a level at which the deal you want is feasible .. the answer is go for it.
Dont hang around at a level where the most likely maneuver is up .. telling yourself its going to go a quarter percent lower. Golden rule of the markets is .. dont try to pick the bottom .. and dont try to wait for the top. Get your loan in while the money and feasibility is good … so in the long term you make money.
Two things I dont need a crystal ball to see are .. the Europeans wont play nice to settle their debts .. and when they stop playing nice .. the banks will lock up on funds. If they are offering any money at the moment .. now is the time to put your hand out for it.
Rich. Dont suppose you could share these deals hehe.
Im considering a portion on fixed.
Yeah very topical. I am considering one of my investments at least on Fixed. Anyone else thoughts?
Citibank / Anz / AMP are 3 i would look at prior to UBank.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
ANZ are quite competitive in the 2 year space.
It's an interesting time with fixed rates – I don't have a crystal ball but my hunch is that they may not stay this low for much longer.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
RP Data's blog from last week makes some interesting comments about this question. Click here to read
Just got notification that Citibank's fixed rates are going up on Monday.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Interesting, so they are anticipating rate rises.
Speaking with a broker today who had the opinion that banks will raise fixed rates in an effort to offset the rising cost of funds. His thoughts for what they are worth.
Paullie wrote:Interesting, so they are anticipating rate rises.I don't think that's the underlying reason – it's probably closer to what Derek mentioned above.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Rising costs of funds, of course hehe.
I'm not an expert, but Id like to know. If our banks have AAA credit ratings which is better then the USA, how can the USA offer 2.5% mortgage rates? Surely our banks source funds cheaper than any US bank?
Not sure that our banks are AAA.
AA maybe – depending upon which ratings agency you refer to.
Be aware a (some) ratings agency/ies also rated the interbank loan packages which included Ninja Loans as AAA.
Surely they are still rated better then the US banks. 2.5% to 6.5% is a big difference.
I think it is not so much that rates may go up, but that they may not come down a lot more. Ass uming that to be the case, every lender that I am aware of has 1 to 3 years rates more competitive than their discounted variable rates at the moment – some by more than 50 basis points. Thus it is more likely a case of not offering discounted fixed rates that will come back to bite the lender.
As a very general rule of thumb, for the major banks, fixed rate loans are sourced from the money markets, and variable rate loans use deposit funds (I said very general…) Look at the spread now between what the mainstream lenders offer now between term dpeosit special rates or on line saver accounts, and a good discounted homeloan. I don't think many investors would settle for a return that low…..including any of us. Without digressing too much, makes me laugh when people (like Mark Bouris…..spare me please) talk about needing more competetion and that 'Japenese banks will come in and make rates more competitive and force 'the big four to drop their rates' absolutely hilarious. THere are plenty on the forum that have been involved with finance a lot longer than me….but I don't recall seeing the home loan market as competitive as this in a long time – if ever.
And…………back to the original question; if you can get a fixed rate in the high '5's% and have a med/long term purchase or investment strategy it would be hard to go wrong I think.Cheers
Interesting article –
http://www.smh.com.au/business/lenders-strike-looms-without-rate-relief-20120209-1rni0.html?rand=1328759630340Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
ANZ lifted rates by 0.06% and decreased their 3 year fixed rate to 5.99%.
Fixed rates are looking good.
Yep, it was an interesting move. Hopefully they can keep the 5.8% two year in place for a bit longer.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Or they are hoping to scare the masses into going fixed expecting the cash rate to drop.
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