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 41Feb 07, 2009 5:21 pm to_do_list Would I fix...nah...firstly I don't think banks would offer a rate that low because they would be mad to...the economy will recover. http://www.theage.com.au/national/more-rate-cuts-likely-reserve-20090206-7zz6.html?page=1 Quote: THE Reserve Bank has signalled further, aggressive interest rate cuts, declaring that without them the economy will stall and almost certainly fall into recession. Quote: The National Australia Bank warned yesterday its days of fully passing on rate cuts were reaching an end. [sneakersss] Re: fixing your home loan 42Feb 07, 2009 5:56 pm [quote="YSSIM Quote: The National Australia Bank warned yesterday its days of fully passing on rate cuts were reaching an end. Yes this was suspected. No other comment Re: fixing your home loan 43Feb 07, 2009 10:52 pm YSSIM to_do_list Would I fix...nah...firstly I don't think banks would offer a rate that low because they would be mad to...the economy will recover. http://www.theage.com.au/national/more-rate-cuts-likely-reserve-20090206-7zz6.html?page=1 I wasn't implying that the we were recovering yet...or that rates wouldn't drop more. Fixed term (5 to 7 year) rates would be highly unlikely to get to 4% variable maybe, fixed?...as I said we'd be in the deepest of do-do for that to happen. Although I've been as least as good at predicting the economy as some merchant bankers...and world leaders... Quote: THE Reserve Bank has signalled further, aggressive interest rate cuts, declaring that without them the economy will stall and almost certainly fall into recession. Thankfully they still have some of that lever left....we don't want to be in the position of the US with a "target cashrate" of 0% to 0.25%. Japanese experience was what they call the "lost decade" of recovery. Quote: The National Australia Bank warned yesterday its days of fully passing on rate cuts were reaching an end. I wonder whether the current differentials in rates across banks is affected customer uptake? 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?? 44Feb 08, 2009 10:53 am If fixed rate goes down to 3.99% for 5 years, I would take it straight away.
Or even 10 years at 3.99% ??? sounds good to me. LOL But I dont personally believe 3.99% for 10 years will be happening. Unless our economy is .............. ugh I don want to imagine it. Williams Landing Stage 10 - Kingwell Neighbourhood Re: fixing your home loan 45Feb 08, 2009 12:35 pm to_do_list I wonder whether the current differentials in rates across banks is affected customer uptake? No, I think all the banks are flat out at the moment and they love it. Bank staff haven't been this upbeat since January 2008 when their volumes started shrinking. I believe sceptics may say that's at the bottom of all these threatening comments about not passing on the rate cuts in the future. Re: fixing your home loan 46Feb 08, 2009 2:34 pm to_do_list YSSIM to_do_list Would I fix...nah...firstly I don't think banks would offer a rate that low because they would be mad to...the economy will recover. http://www.theage.com.au/national/more-rate-cuts-likely-reserve-20090206-7zz6.html?page=1 I wasn't implying that the we were recovering yet...or that rates wouldn't drop more. Fixed term (5 to 7 year) rates would be highly unlikely to get to 4% variable maybe, fixed?...as I said we'd be in the deepest of do-do for that to happen. Although I've been as least as good at predicting the economy as some merchant bankers...and world leaders... I know you weren't implying anything. I was agreeing with your comment. The RBA can cut the cash rate as much as they want. Whether the banks pass the rates on in full...well...that's a whole other thread in itself, right? [sneakersss] Re: fixing your home loan 47Feb 08, 2009 3:05 pm YSSIM Whether the banks pass the rates on in full...well...that's a whole other thread in itself, right? Yes and here it is https://forum.homeone.com.au/viewtopic.php?t=13460 Fixed rate home loans 48Apr 22, 2009 1:08 am 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? Re: Home Loan & Interest Rates - to fix or not?? 49Apr 22, 2009 5:56 am thlo 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. 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'm torn between whacking it all into the mortgage to redraw later on or start adding to our share portfolio again. Both are decent options for us as we are young... 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 karol 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'm torn between whacking it all into the mortgage to redraw later on or start adding to our share portfolio again. Both are decent options for us as we are young... 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 riffa thlo 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 freebo 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. The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 18896 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 35191 |