
http://www.theage.com.au/national/more-rate-cuts-likely-reserve-20090206-7zz6.html?page=1
Browse Forums Home Finance Re: fixing your home loan 43Feb 07, 2009 10:52 pm mmm....donuts Homer Simpson 1956- Links: Site Costs Ready Reckoner | H1 Addiction Medical Advice | Château TDL: The Backyard Re: Home Loan & Interest Rates - to fix or not?? 50Apr 22, 2009 2:40 pm I agree with everything Riffa has pointed out. Banks won't be making much of a margin if they keep reducing the mortgage rates and the fact is they still need to attract depositers. We want to save up for some things at the moment but financially it makes absolutley no sense to put our money in the bank because, after inflation, we are basically paying the bank 2% a year to hold on to it for us ![]() I have to say that most of the fixed rates I've seen aren't even that attractive. Variable customers tend to win out over the fixed rate guesstimators in the long-term anyway and I agree with the person who said that fixed rates are usually at the benefit of the bank. However, lifestyle is always about cashflows... so if a fixed rate will help you achieve XYZ goal then I would go for that. Personally, I don't think I will fix our rate, ever. We just don't need the certainty. Re: Home Loan & Interest Rates - to fix or not?? 51Apr 24, 2009 4:32 pm ![]() I agree with everything Riffa has pointed out. Banks won't be making much of a margin if they keep reducing the mortgage rates and the fact is they still need to attract depositers. We want to save up for some things at the moment but financially it makes absolutley no sense to put our money in the bank because, after inflation, we are basically paying the bank 2% a year to hold on to it for us ![]() The banks are attracting depositers as the money is safe and isn't going to dissapear like money in the market. Thats how they are attracting people. Many small investor are scared and have been burned badly by the whole market experience, so until they see solid continuing gains in the market and less talk of depression era experiences people will happily put deposits into effectively 0% banks. Also inflation is running at 2% so unless your bank is not giving you any return currently you aren't paying them to hold it...but then you aren't exactly getting a return either...but as i said it's safe and thats why people do. not everyone has a mortgage to whack the old dollars onto ![]() Fixing your home loan 52Apr 24, 2009 4:38 pm ![]() ![]() Now that banks have started to increase their fixed rates on home loans as we are clearly heading deeper into our recession and RBA has some more work to do in terms of lowering the cash rate, what do you guys think will happen? Do you think the banks will lower their fixed rates in a few months as demand from first home buyers wanes? I dont think banks will be able to lower rates much more if the official rate drops. Banks pay interest to customers who put money into the bank as a secure place to invest. Even as official rates drop, investors still epect to get a reasonable return on their money. The bank then lends this money out, which means this must be lent out above the deposit rate. Add in the banks profit margin and "increased funding costs", and you will end up somewhere around the 5% mark. Just my thoughts, as I dont see banks rates dropping by any significant amount in the future. I am more concerned about rates increasing. We are in for "interesting" times ahead. riffa, only about 40% of the funds banks lend out come from deposits. The rest comes from overseas wholesale lending markets. The Rudd Government guarantee these loans sought by Australian banks from overseas lenders (wholesale lending guarantee). The government charges big banks a much lower fee for that guarantee than their smaller regional banks, which is reputedly not helping competition. Re: Home Loan & Interest Rates - to fix or not?? 53May 14, 2009 5:55 am Thanks for your great post guys. It is very informational and it also serves as a guide for us before making a loan. Simulation pret immobilier west sydney home loan advice 54May 15, 2009 12:20 pm Well thank you caramel1982. Drop us a home finance question anytime at the forum. Fixing your Home Loan Advice 56Jun 02, 2009 4:04 pm ![]() This is another great thread... riffa you have some excellent points, we are really unsure weather to fix it in or not.. it seems the banks keep raising them little by little Yes, fixed rates have been creeping up lately. Hi there, I hope someone can give me some insight into a (very lucky) situation I'm dealing with. My Mum was gifted property by my grandfather after he passed. My… 0 8324 ![]() Can someone pls help with advice. My husband and I live in NSW and own a land in Tasmania. We were pre-approved to build a home( owner occupier). My husband is working… 0 11506 Unless there were unforeseeable issues with the site, I dont think you should have to pay for contractors errors or poor planning. I'd probably try and be reasonable and… 5 14803 |