Fixed Rates

[andie_pandie]

Hi Guys

Just a little warning for anyone out there with Commonwealth Bank Variable Rate Home loans, whom may have been waiting for to the market to bottomed out a little prior to possibly fixing.

The fixed rates are heading up on Tuesday next week so if you are looking to fix then you have until Monday to organise it. If you do fix you can put extra repayments into a fixed up to $10kpa however you do not have a redraw facility. There is a relatively small charge for fixing as well.

Also if you do fix please only fix for the period you intend to stay in the property. If you pull out of a fixed loan to either Refinance and or Sell then you could be up for early payout interest. The amount that you will be charged is based on many variables which include time that you have remaining in your fixed loan, amount you fixed for, and rate the bank works off (possibly the cash rate depending on bank).

A general rule of thumb is if you fix at the bottom of the market, and the rate the bank has their fixed product at the time is higher then you should not have much if any payout, however if it is the other way round ie: you fix higher, then the market falls (as has in the past year) then you may be up for high exit fees. Always check with your bank to their policies regarding their fixed rates.

I cannot advise on what is the best thing for anyone to do with regards to their rates, everyone has different circumstances and what might be right for one person may not be right for the next. If you are on variable and you stay on variable you will be aware of the risks, no different to fixing your loan at todays rates and then next week instead of going up they fall (it can happen).

[MonkeyMum05]

Thanks Andrea

[aje001]

Thanks for the heads up... I think a lot of people have been keeping their eyes open to see when the banks look like they're going to raise their fixed rates. No so good for homeowners, but a good sign for the economy overall

[wantvba2c]

Bugger. Im on a fixed rate with CBA which is higher than the current fixed rate. I was hoping it would stay low so in September when our fixed period finished we might be able to reduce our payments a little. Im currently on about 7.3%. It would cost me probably more to get out of it now than it would just waiting til september.

[ashleerose]

The lady across the road from me (also a single parent with two kids) just got a loan with the cba and has fixed it for 15 years (didnt think this was possible?) anyhow she just saved $5500 for towards a deposit (i think the bonuses helped) and has one casual job (but gets paid heaps in childsupport) was able to get quite a considerable loan (i am surprised she was able to get as much $200,000+) given the fact that the eldest is almost 16 (centrelink payment changes when they get to 16?). Anyhow wished her all the best but of course it is a worry because i remember not long ago i wanted a car (couple years back) and the bank wanted a consistant savings record, didnt consider my pension as an 'income' and casual work well wasnt good enough as its up and down . I think she just made it in the nick of time with getting this loan because for awhile they have been saying that they are cutting down on giving loans out (or maybe i have misinterrupted it?) to people like me (i now have three casual jobs, minimum childsupport).

[lizzo]

This might be a stupid question but why are they putting the fixed rates up.....i know the fixed rates rules and influences are a little different to the variable but seriously - arent they making enough blardy money!?