Fixed rate home loan - good time?

Hi All

Im with one of the majors who are now offer around 2.1% to fix in a 2 year rate. Just wondering if anyone else is looking at fixing? I know we are in a crazy world at the moment, but i can imagine how they can drop rates any further…..

Cheers

Comments

  • +2 votes

    No its not a good time to fix.

    • +1 vote

      typically the bank rates are 2.5-3% ish above the cash rate….not sure how they can go below 2% variable…

      • +8 votes

        are you really going to get financial advice from Some Guy?

        • +1 vote

          Right.

          Suggest people look at how rates work in the UK which has similar system to us. They've been to 0.25%. Best deals are around 1.99%. You do get cheaper but watch out for application fees (GBP0 - 999 or % of mortgage taken out and also depends on loan as % of property value)

        •  

          I was kinda hoping That Guy would chime in. He's always worth listening to.

  •  

    Hold the line, Wait for more deals they will be coming

  • +2 votes

    If you lock, you sacrifice flexibility.

    What happens if xyz bank offers you $5000 cash to refinance next week? You can't take up that offer because you're locked in for x years.

    •  

      I did wonder how refinancing is going at the moment? How would they consider potential downturn and job security?>

  • +1 vote

    I would say that if you refinance in future (and let's say the gloom and doomers wish of house prices decreasing by 20% is true) then you might be up for LMI as you would have lost equity in your home. That will probably negate any cash back offers.

    I'm planning on fixing half of my mortgage on 1 year max and leaving the other half on variable.

  • +2 votes

    I'm not sure I'm aware of any time people have really come out ahead with a fixed rate. Banks know what they're doing.

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