Hi All,
I thought people would be interested to know what is happening in the money markets at the moment, given the effect it has on all of our mortgage rates. There have been significant drops in mid term rates during recent weeks, 1 to 3 year bank bills are at 3.185%, compared to the RBA rate of 3.5%. I'll add in here that on our web site we predicted a rate of 3.25% by the end of 2012 during Dec 2012, it seems we may well be on the money, if not a bit too conservative.
CBA dropped its business rates, against residential security, last week and there has been one residential lender come out with a fixed rate offering at 5.39% for up to 3 years. The long term average residential mortgage rate is at about 7%, so this is very cheap money.
It seems we are in for some good times for those interested mainly in cash flow.
Yep, the Dragon just dropped their fixed rates lower too with 1 and 2 year fixed at 5.49% under the advantage package….and they provide a $700 rebate for refinancing to them.
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]
Could be a good time for those looking to resolve SANF with certainty of expenses to lock some of their loans in.
Anyone locking their rates should way the SANF benefits with loss of flexibility.
A lot of the banks are coming to the fore on fixed rates. Citibank did something similar yesterday with 1, 2 & 3 year fixed at 5.55% with $1000 refinancing and free 60 day rate lock.
However as you can still get variable packages around the 5.9% – 6.0% mark, it still bodes that age old question whether to fix or not for the long term.
Cheers
Tom
If banks are dropping their fixed rates does that mean that they think the RBA will continue to drop the cash rate?
Derek — what is SANF? Sorry if this is a silly question.
ygue6072 wrote:If banks are dropping their fixed rates does that mean that they think the RBA will continue to drop the cash rate?Derek — what is SANF? Sorry if this is a silly question.
The RBA will almost certainly be dropping rates in the near future. The money markets suggest it could be up to 1% over the next year, although most economists don't seem to think it will be this far
ygue6072 wrote:Derek — what is SANF? Sorry if this is a silly question.
Sleep At Night Factor.
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]
Hi YG,
As Jamie said SANF = sleep at night factor.
In otherwords if you are worrying about cashflow, meeting bills etc if rates rise in the future then it may be appropriate to fix some rates if certainty of expenses is something you are chasing.
Thank you everyone! This makes it a lot easier to understand the conversation
At the moment it is pretty clear that rates are heading down! As a mortgage broker I keep an eye on the fixed rates to see if interest rates are on the move. At the moment it seems they are! Here's a more detailed article I wrote on the topic!
http://investmentproperty-howto.com.au/interest-rates-are-going-down/
Yes you are right, at the moment Fixed Rates are going down. It’s very difficult for experts to accurately predict where rates will go; however right now we are seeing historic lows. By keeping an eye on the current market rates you can be ready to pounce once you see the rates where you benefit most.
1 year fixed 4.79% with ubank
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