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  1. #21
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    Our bank manager told us that there is a strong chance of a further rate cut coming up soon so hold your horses with fixing...

    We are currently on a ridiculously low rate with NAB, 3.81%.. He said our rate would drop to 3.6% in the near future. Just a heads up.

    I wouldn't fix personally as there is very little chance of rates going up in the near future. Most of these fixed rates being offered are for a Max of 2 years because banks aren't stupid - they know that rates are only going down this year and not likely to go up any time soon.

  2. #22
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    I wouldn't fix now. Further cuts are coming...

  3. #23
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    I'd also hold out - we are on a 3.99% variable with nab

  4. #24
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    The op has .65% difference in the variable (4.4) and fixed (3.75) I think it's worth considering fixing a portion as the fixed is lower and the difference is at least 3 interest rate cuts.

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  6. #25
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    Default Home loans

    Sorry I might sound bit stupid but I didn't think I could switch home loans if we had other debts (I don't handle finances clearly 😁) I def need change though as ours is 4.66 %
    Last edited by monnie24; 07-06-2016 at 01:33.

  7. #26
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    We have until the end of the month to make a decision. We have also heard of a possible interest rate cut this month but there is no guarantee anz will pass that on if there is one. We will only shop around if our house value comes back at a certain % which will give us greater freedom and choice with lenders, and of course taking into consideration applicable fees etc.

    It makes no sense for us to just sit on 4.4% and wait for 2-3 interest rate cuts, we need to either switch lenders (if possible, pending valuation) or look at fixing a portion.

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    Quote Originally Posted by witherwings View Post
    Our bank manager told us that there is a strong chance of a further rate cut coming up soon so hold your horses with fixing...

    We are currently on a ridiculously low rate with NAB, 3.81%.. He said our rate would drop to 3.6% in the near future. Just a heads up.

    I wouldn't fix personally as there is very little chance of rates going up in the near future. Most of these fixed rates being offered are for a Max of 2 years because banks aren't stupid - they know that rates are only going down this year and not likely to go up any time soon.

    Yes that's exactly why fixed is at a low rate, but 2 years isn't long to lock into. For us personally it's weighing up our potential savings over a 2 year period if we take the gamble and 'stay' at our current comparatively high variable rate, or fix a portion now, immediately saving us thousands while we wait for the variable rate to drop. Yes it will most likely drop but we would need to calculate how much extra we would be paying until that drop/s occur, if they occur.

    It's weighing up guaranteed money savings now verses potential future money savings. It's quite difficult to always have the best possible rate, someone is always going to have a slightly better deal.

    This is why splitting the loan is attractive in our situation, it may work out better than taking a gamble and waiting, or work out very similar over a 2 year period (the piece of mind now does hold some value to us given I am on maternity leave).

  9. #28
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    Quote Originally Posted by BigRedV View Post
    The op has .65% difference in the variable (4.4) and fixed (3.75) I think it's worth considering fixing a portion as the fixed is lower and the difference is at least 3 interest rate cuts.
    But she may be able to negotiate a better variable rate, as 4.4% isn't exactly a great rate to begin with.

  10. #29
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    Default Home loans

    Quote Originally Posted by sunnygirl79 View Post
    Yes that's exactly why fixed is at a low rate, but 2 years isn't long to lock into. For us personally it's weighing up our potential savings over a 2 year period if we take the gamble and 'stay' at our current comparatively high variable rate, or fix a portion now, immediately saving us thousands while we wait for the variable rate to drop. Yes it will most likely drop but we would need to calculate how much extra we would be paying until that drop/s occur, if they occur.

    It's weighing up guaranteed money savings now verses potential future money savings. It's quite difficult to always have the best possible rate, someone is always going to have a slightly better deal.

    This is why splitting the loan is attractive in our situation, it may work out better than taking a gamble and waiting, or work out very similar over a 2 year period (the piece of mind now does hold some value to us given I am on maternity leave).
    I honestly think you could get an immediate saving by switching lenders. There shouldn't be any significant fees for switching lenders; that practice has been abolished years ago.

    Why would you fix with a lender that has high variable rates to begin with? Switch to a better/more competitive lender and then look at fixing with THEM.

    ETA: it's not exactly a gamble waiting for rates to drop .. When fixed rates are offered below the variable rate it means that banks expect the cash rate to drop. When fixed rates are above variable, the expect cash rate to rise. It's just economics.

    Having said that, if you are looking at fixing only a portion of your loan I guess you would get the best of both worlds, but you can shop around now for a better rate with different lenders, and each bank will do their own valuation. If you bought 3 years ago at the bottom of the market, you should definitely have significant equity now.
    Last edited by witherwings; 07-06-2016 at 06:07.

  11. #30
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    Default Home loans

    Quote Originally Posted by witherwings View Post
    But she may be able to negotiate a better variable rate, as 4.4% isn't exactly a great rate to begin with.
    Yes I know, she already said she was going to ask them for a better deal.

    But sometimes people are stuck with their lender. She's currently on maternity leave with a $500k mortgage so there's probably not much chance of being approved with another lender.
    Last edited by BigRedV; 07-06-2016 at 06:11.

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