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  1. #1
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    Default Home loans

    We have had our home loan for over 3 years now and came off a fixed rate late last year. We decided to stay variable and negotiated a rate at the time since interest rates were dropping etc.

    Today I went in to enquire about a few things and noticed a very competitive fixed rate (2 yrs) advertised as a special this month, got talking to the adviser and realised that by fixing even a portion of our home loan we could be saving several hundred $ a month. We haven't decided what to do as yet as we want to look at a few scenarios and get our home revalued as we should have a decent amount of equity now.

    Just wandering what arrangements others have (if you don't mind sharing), with regard to fixed, variable or a combo of both and how it works for you?

    Whilst we weren't so keen to fix at this time, if it saves us $500 or so a month maybe we should be looking at fixing some if it?!

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    Hi Sunnygirl have you checked if there is a fee to fix the rate? I know CBA charge a $750 rate lock fee which really takes away from the savings I would have made when considering if I should fix my loans with them.

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    I don't know if I'd do it again. I got burnt fixing a few years ago and interest rates dropped and it cost me heaps of cash. Also if you want to break the fixed rate during the period (eg sell house or rates crash further and you can get a much better rate) it costs thousands to get out of. It's a gamble. If you're sure you will stay in your home and it's a GREAT deal then maybe fix a portion to hedge your bets?

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    sunnygirl79  (06-06-2016)

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    Quote Originally Posted by gypsychild View Post
    Hi Sunnygirl have you checked if there is a fee to fix the rate? I know CBA charge a $750 rate lock fee which really takes away from the savings I would have made when considering if I should fix my loans with them.
    No fee but it's with our current bank so not sure if the no fee is because we are already customers. It's not advertised on their website. I think they are trying to keep customers from switching to another lender.

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    Quote Originally Posted by gingermillie View Post
    I don't know if I'd do it again. I got burnt fixing a few years ago and interest rates dropped and it cost me heaps of cash. Also if you want to break the fixed rate during the period (eg sell house or rates crash further and you can get a much better rate) it costs thousands to get out of. It's a gamble. If you're sure you will stay in your home and it's a GREAT deal then maybe fix a portion to hedge your bets?
    We are definitely not selling for at least 10 years so a 2 yr fixed isn't a problem in that regard. But yes our concern is rates dropping further but we need to do some more maths/scenarios. We would only fix a portion. So some of it would remain variable and I understand we can negotiate that down a little as well.

    Need to do some research to figure out how great the deal really is.

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    We fixed our home loan last year when we switched from a Big 4 bank. We fixed 3.95% for 3 years which really suits us at the moment with me only working 2 days a week. I think down the track we will fix part of the loan and keep part variable and use all our savings (kid's accounts) to offset the variable portion.

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    Cue  (06-06-2016),sunnygirl79  (06-06-2016)

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    we are 100% variable but we only got our home loan last feb when interest rates were super low so it made no sense to fix. our rate is currently 4.21% (nab) so we're pretty happy. we have an offset which we use as well.

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    sunnygirl79  (06-06-2016)

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    Quote Originally Posted by Chippa View Post
    We fixed our home loan last year when we switched from a Big 4 bank. We fixed 3.95% for 3 years which really suits us at the moment with me only working 2 days a week. I think down the track we will fix part of the loan and keep part variable and use all our savings (kid's accounts) to offset the variable portion.
    That's kind of what we are thinking of doing, I am currently on maternity leave. We are being offered 3.75% which seems pretty good but I need to do my research. We were also advised to use our savings to offset the variable portion.

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    Chippa  (06-06-2016)

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    Quote Originally Posted by turquoisecoast View Post
    we are 100% variable but we only got our home loan last feb when interest rates were super low so it made no sense to fix. our rate is currently 4.21% (nab) so we're pretty happy. we have an offset which we use as well.
    Our variable is currently 4.4% so hoping to reduce this regardless of what we do.

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    turquoisecoast  (06-06-2016)

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    Default Home loans

    We are discussing fixing half of our home loan. The fixed rate is 3.75% for 2 years and our current variable rate is 4.17% (we are with ANZ and the fixed offer is from our ANZ broker)

    The only thing I don't like about fixing a loan fully is some banks charge penalties if you pay it off early and you can only pay a certain amount extra off.

    Our fixed rate would be maximum $5k extra repayments a year so that's why we are only fixing a portion.


 

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