Just wondering what is your home loan interest rate and loan value? Please put in comment.
I am with Bank of Melbourne with offset account 590k (LVR 70%) and interest rate is 3.29% - with offset.
They are offering 2.89% fixed. For 1 or 2 yr.
Is worth it?
PS - I can not able to switch the bank due to income reduced after loan.
I will be convert into two loan accounts 300k fixed; 290k with offset - I will not fill this offset in next 12 months unless will win a lotto.
refinance bonus is based on where you go. but it is about 2k (or Bank of Melbourne 2k per property)
My offset account will cover about more than 5-7 years loan repayment. My income was reduce due to implementing some tax planning (transferring money to family from trust distribution - which bank do not like).
I've resigning with Westpac today, split mortgage of 300k on variable offset (3.17%) and 300k on fixed (2.89%).
Are you sure it’s offset not redraw?
Personally I wouldn't be fixing anything at the moment. Interest rates are still in a state of change (downwards) and fixing now could be doing yourself out of savings.
As you have seen last two drops, bank passed 0.15% out of 0.25%.
Current rate is 3.19%
Fixed rate is 2.89%
difference is 0.30% = equivalent to two further drops.
I get it, it's still a decent rate to fix at. But fixing a rate is nothing more than a medium term gamble. You can win big or you can lose big. With the current downward trending rates, I personally would not recommend fixing, but that's just my opinion.
2.89% is low, you never know when it will go up,
you know the banks will put it up before the official announcement;
2.89% over an entire life of the load is good, eg. 25 - 30 years.
Crunch the numbers yourself with different percentage rates,
there are calculators online somewhere.
2.89% over an entire life of the load is good
Except that OP is being offered the 2.89% fixed for only one or two years, and not the entire life of the loan.
I hate myself when I speed read - do'h
This is fixed interest rate for certain term of the loan.
most popular are 1 yr fixed, 2 yr fixed, 3 yr fixed, 5 yr fixed.
With ANZ - $230k 3.22% variable with offset & 420k 3.75% fixed loan ending 03/03/2021
Very bad that i fixed the loan @ 3.75%
ask exit price for fixed. may be you can recover if you move bank - other bank give you $2000/per property. PM me for assistance, I could pass number of my banker. check if he could help.
I wish i hadn't locked mine at 3.75% in April… :(
ask the exit price for fixed loan.
good idea, i'll get on to them.
Normally a fixed loan has no offset (unless it is different now)
With an LVR of 70% you are in a very good position to look into other banks for a better deal as you will not get thrashed into paying LMI.
Plus many other Banks offer around $1200 up-front on approval to pay your exit fees; discharge of mortgage and other scamming fees to change over to them.
Bank of Melb seems like they want to lock you in for 2 years and then you will pay a lot more in interest after the loan term. So IMO, if you plan to stick to Bank of Melbourne you will pay more at the end to offset.
It seems like you have suffered a reduced income and the Bank wants to change your loan repayments to service your loan however be careful when the 2 year term ends as you will get slugged and be under mortgage stress unless you get a higher paying job or refinance for a longer duration.
In relation to not switch banks due to reduced income, are you changing jobs that pays less?