In the current market rates, what would be better a 3 year fixed at 4.29% or a 5 year fixed at 4.44?
Browse Forums Home Finance 1 Apr 28, 2015 5:25 pm In the current market rates, what would be better a 3 year fixed at 4.29% or a 5 year fixed at 4.44? Re: Finance Rate 3Apr 29, 2015 10:12 am Firstly, you have to decide if you want to ride the market or if you want certainty. If you want certainty than personally I think that fixed rates @ < 4.5% is a good deal. With interests rates at record lows already there's probably limited further downward movement to come. There's likely to then be a plateau before perhaps a slow increase as the economy picks up. Re: Finance Rate 5Apr 29, 2015 3:53 pm In reality no one knows (especially the so called experts who get it wrong a lot of the time) on what interest rates will do long term. Just look at the end of last year when people were talking about rate rises, and a few months later we had a rate cut. In saying that fixed rates are independent to the RBA and their announcements and rise and fall out of kilt with the normal cycle, however if you're thinking of beating the bank, history shows that you will lose out more often than not. There are a few reasons people should fix, whether or not you find them applicable with your situation needs more information. As someone mentioned see a decent broker who can help. Cheers Tom Re: Finance Rate 6May 25, 2015 3:33 pm I would say stick with variable as banks would have employed professionals who have long gone over the forecasted 'yield curve' in years ahead in developing the fixed rate. They would have most likely considered everything reasonably predictable, and your only way of really 'winning' is the unexpected coming left field. It could happen, but the odds are obviously against your favour. I believe fixed rates work well for those with bad cashflow management skills, who need the certainty? Will be going through the same thought process with my broker once I decide on one. Plus you have the added flexibility with variable loans as opposed to fixed (pay out fees, early termination etc, refinancing issues). Re: Finance Rate 7May 27, 2015 9:49 pm What is everyone getting as their finance rate at the moment? Ours has dropped to 4.53% with the latest drops, I thought this was good but perhaps it's still a bit high? Our build thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=70984 Re: Finance Rate 8May 28, 2015 11:34 am Average rate is presently 4.3X% or around there - depending on loan amount and % borrowed, but, there are great offers well under this too. Its a great time to be a broker!! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Finance Rate 9May 28, 2015 12:00 pm Can you refinance on a construction loan? Our build thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=70984 Re: Finance Rate 10May 28, 2015 12:02 pm generally not as an incomplete building, but once its finished... Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Finance Rate 11May 28, 2015 12:38 pm becjarrettdalton Average rate is presently 4.3X% or around there - depending on loan amount and % borrowed, but, there are great offers well under this too. Its a great time to be a broker!! Yes, great deals to be had, unless you are an investor with all the recent tightening of policy and pricing. But that wouldn't apply to the majority of people on this forum as they are owner occupied. Cheers Tom you were just referred to get advice from your solicitor. This is a legal matter. Separately, why would you use a buyers agent for a house and land package? 3 56293 |